Hewlett-Packard Writes Off $8.8 Billion, Alleging Fraud
Shares of Hewlett-Packard (NYS: HPQ) appear headed for a new 52-week low today after the company disclosed an $8.8 billion charge related to its acquisition of Autonomy. The stock was off nearly 12% pre-market.
"The majority of this impairment charge is linked to serious accounting improprieties, disclosure failures and outright misrepresentations at Autonomy Corporation plc that occurred prior to HP's acquisition of Autonomy and the associated impact of those improprieties, failures and misrepresentations on the expected future financial performance of the Autonomy business over the long-term," HP said in a press release reporting fourth-quarter and full-year results.
Last August, HP bid $10 billion in cash for Autonomy, which specializes in information management. Then-CEO Leo Apotheker canceled plans to use capital for share repurchases after announcing the deal.
The article Hewlett-Packard Writes Off $8.8 Billion, Alleging Fraud originally appeared on Fool.com.Fool contributor Tim Beyers is a member of the Motley Fool Rule Breakers stock-picking team and the Motley Fool Supernova Odyssey I mission. He didn't own shares of any of the companies mentioned in this article at the time of publication. Check out Tim's web home, portfolio holdings and Foolish writings, or connect with him on Google+, Tumblr, or Twitter, where he goes by @milehighfool. You can also get his insights delivered directly to your RSS reader.
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