December 27, 2012
Thisismoney.co.uk reported that HP is looking to axe “up to 200” Autonomy staff, though sources close to the OEM said “it would be fewer” due to its poor 4Q12 performance largely blamed on what it claims was an overvaluation of the UK software company.
Autonomy, which is currently “being integrated” into HP’s Information Management division, was previously owned and run by Mike Lynch, who has posted on a website his response to the case, claiming that “he’s waiting for evidence from the company to back up the accusations” of misleading valuations.
Bloomberg reported that Lynch has stated he “will be reviewing” HP’s annual “10-K regulatory filing”, which is due to be filed on 31 December, “to see if it sheds more light” on why the OEM is taking the steps it has taken thus far. Lynch noted that HP “hasn’t explained its claims”, adding that “we do not understand the allegations, or how they could possibly add up to a writedown of over $5 billion (€3.76 billion)”.
HP’s claims that it was “misled” on the state of Autonomy’s finances and its valuation before purchase have become the latest problems to affect the OEM, which has seen shareholders sue over the acquisition and the details of an $8.8 billion (€6.8 billion) cash impairment charge. The OEM has thus far complained to the Serious Fraud Office and other US authorities.
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