HP Posts $8.8B Loss On Autonomy Deal Due To Alleged Lies

Law360, New York (November 20, 2012, 12:00 PM EST) -- Hewlett-Packard Co. on Tuesday reported an $8.8 billion fourth-quarter loss related to its acquisition last year of Autonomy Corp. PLC and said the British software company could face civil and criminal accounting charges for allegedly lying about its financial health during deal negotiations.

HP said Autonomy, which it bought for $10 billion in August 2011, may have intentionally inflated its financial metrics before striking the deal, which was panned by some analysts as overpriced. The $8.8 billion charge includes more than $5 billion in losses linked...
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