The U.K. Looks into the HP Buyout of Autonomy
The never-ending battle over the Hewlett-Packard Co. (NYSE: HPQ) buyout of Autonomy continues. HP took a $5 billion write-off less than a year after the deal. It seems that the big company was duped by Autonomy's financial claims, or so it says. Now, the United Kingdom has decided that it should weigh in. According to the BBC:
The UK's Serious Fraud Office (SFO) is investigating the sale of technology firm Autonomy to Hewlett Packard, according to a filing from HP.
It joins the US Department of Justice and the UK accounting regulator in questioning the firm.
A number of investors and due diligence experts believe that some fault sits with HP management and its board. The company engaged investment banks and auditors to review the numbers. Certainly, with so much money involved, it would be prudent to make a meticulous evaluation. HP clearly did not. Now it has to rely on regulators, and probably the court system, to clean up the mess.
Filed under: 24/7 Wall St. Wire, Mergers and Buy Outs Tagged: featured, HPQ