Feb 18 Hewlett-Packard Co's senior
executives were aware of Autonomy Corp's accounting practices
months before a whistleblower flagged them, the Financial Times
reported citing email records.
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 overstating profits at one of its main British
units by 81 percent in the year before it was sold.
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 whistleblower 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.
"These revelations prove we were open and transparent with
our auditors who continue to stand by the accounts," Autonomy's
former Chief Executive Mike Lynch said in an email statement to
"Meg Whitman must answer to her shareholders with what she
knew, when she knew it and how she and her senior colleagues
made such factually incorrect and serious statements that were
so easy to check from the audit packs," Lynch added.
HP could not be immediately reached for comment by Reuters
outside of regular business hours.