Feb 18 Hewlett-Packard Co's senior
executives were aware of Autonomy Corp's accounting practices
months before a whistle-blower flagged them, prompting HP to
write down Autonomy, the Financial Times reported citing email
Palo Alto, California-based HP has said it was a victim for
having paid $11.1 billion to buy Autonomy in 2011. It took a
writedown of $8.8 billion in November 2012, accusing Autonomy
officials of accounting fraud.
Autonomy's practice of selling hardware to clients at a loss
had been documented by auditors and a report was provided to HP
after it bought the British software maker, FT said.
HP executives were included in communications about
Autonomy's hardware sales before the whistle-blower brought the
transactions to light, FT said, citing several emails. ()
In an October 2011 email that Chief Executive Meg Whitman
was copied on, Autonomy cited difficulties it was having in
selling HP hardware, the newspaper reported.
However, HP said that while it eventually learned about the
hardware sales, it knew nothing of the accounting improprieties
until the whistleblower came forward, FT said.
Autonomy's former Chief Executive Mike Lynch and HP could
not be immediately reached for comment by Reuters outside of
regular business hours.