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Ex-chairman will remain a HP director

HP has announced that its chairman, Ray Lane, has stepped down from his post. Lane has been under fire from shareholders due to his role in the acquisition of software company Autonomy.
 
"After reflecting on the stockholder vote last month, I've decided to step down as executive chairman to reduce any distraction from HP's ongoing turnaround," Lane said in statement. "Since I joined HP's board a little over two years ago, I've been committed to board evolution to ensure our turnaround and future success."

HP posted horrific financial results in November of 2012 to the tune of an $8.8 billion loss. HP blamed the massive loss on what it called improprieties discovered after its acquisition of the software company Autonomy. Not long after HP claimed accounting improprieties led it to overpay for Autonomy, an ex owner of the company stepped forward and blasted HP over its accusations.

HP maintained that Autonomy "invented" nearly $200 million in bogus revenue over two years. HP maintained that this increased “revenue” led it to overpay significantly in its purchase of the company.
 
Along with Lane resigning from the HP board, two other directors also left HP. Interim chairman will be HP director and investor Ralph Whitworth. Whitworth will continue acting as chairman of HP's board until a permanent replacement can be found.

Source: Reuters



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This article is over a month old, voting and posting comments is disabled

Little lies, big lies.
By drycrust3 on 4/5/2013 5:37:10 PM , Rating: 2
quote:
HP maintained that Autonomy "invented" nearly $200 million in bogus revenue over two years. HP maintained that this increased “revenue” led it to overpay significantly in its purchase of the company.

How can this be believable? Autonomy had a net annual profit of $217M. HP bought Autonomy for around $10B. If you assume a ratio of 5:1 between value and annual profit, then the amount HP should have paid wasn't more than $1.1B. Assuming that $200M of the $217M was "inflated profit", that would only explain $1B of the $10B HP were prepared to pay, leaving that HP Board of Directors to explain to their shareholders what the other $9B was for.
All the HP Board of Directors that were on the Board that approved the $10B purchase should resign.




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