HP says acquired company lied about finances
NEW YORK (AP) - Hewlett-Packard (HP) said on Tuesday that a British company it bought for US$10 billion (S$12.25 billion) last year lied about its finances, resulting in a massive write-down of the value of the business.
HP is avoiding calling it a fraud, but it said there were "serious accounting improprieties, disclosure failures and outright misrepresentations at Autonomy Corporation PLC."
HP is taking an $8.8 billion charge in its latest quarter to align the accounting value of Autonomy with its real value. It said most of that charge was due to the fictional bookkeeping at Autonomy.
The revelation is another blow for HP, which is struggling to reinvent itself as PC sales shrink.