Meg Whitman: We wuz robbed!

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Lifer
Sep 26, 2000
28,561
4
0
Miramonti

Miramonti

Lifer
Aug 26, 2000
28,651
100
91
How the fvck you acquire a company for $10b and say the next year it was an accounting mirage worth only $1b is beyond me. This is going to be a fun story to follow...
 
Miramonti

Miramonti

Lifer
Aug 26, 2000
28,651
100
91
Questions have been raised about how much HP knew of problems at Autonomy before the deal was approved by shareholders. A UK-based technology consultant, Alan Pelz-Sharpe, has told the Guardian he blew the whistle on Autonomy to the Serious Fraud Office in September 2011, a week before the deal closed. The SFO declined to comment. The documents Pelz-Sharpe based his allegations on were widely circulated to analysts and journalists at the time.
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...
 
T

theevilsharpie

Platinum Member
Nov 2, 2009
2,322
14
81
jjsole said:
How the fvck you acquire a company for $10b and say the next year it was an accounting mirage worth only $1b is beyond me. This is going to be a fun story to follow...
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Seriously. 15-20 years from now, HP is going to be in business textbooks the world over as an example of how NOT to run a company.
 
L

Lonyo

Lifer
Aug 10, 2002
21,939
6
81
jjsole said:
How the fvck you acquire a company for $10b and say the next year it was an accounting mirage worth only $1b is beyond me. This is going to be a fun story to follow...
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Well they only are saying $5bn is from the accounting "issues".
The rest is because they don't feel it has the synergistic values they thought it did, and because they have probably messed it up and already partially run it into the ground.

But 50% of the value being fraudulent does sound a little odd...
 
IndyColtsFan

IndyColtsFan

Lifer
Sep 22, 2007
33,656
687
126
I have a friend that works for HP (I used to work with him at Compaq pre-merger). When the Autonomy deal was announced, I told him it was really dumb to pay that kind of money for them (although they do have some cool technology) and he disputed that and toed the company line. Guess I was right. :)
 
foghorn67

foghorn67

Lifer
Jan 3, 2006
11,885
53
91
Lonyo said:
Well they only are saying $5bn is from the accounting "issues".
The rest is because they don't feel it has the synergistic values they thought it did, and because they have probably messed it up and already partially run it into the ground.

But 50% of the value being fraudulent does sound a little odd...
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Synergistic? Please run head first into the nearest wall.
 
OBLAMA2009

OBLAMA2009

Diamond Member
Apr 17, 2008
6,574
3
0
carly and meg are proof you should never send a woman to do a mans job. they should be home raising their kids
 
ultimatebob

ultimatebob

Lifer
Jul 1, 2001
25,135
2,445
126
I wonder how many more US jobs they'll need to offshore to make up for this loss... 5,000? Maybe 10,000?
 
Dr. Detroit

Dr. Detroit

Diamond Member
Sep 25, 2004
8,157
624
126
Step 1 in acquiring a Company: Review their audited financial statement. Deloitte was their auditor is is one of the Big 4 firms.

Step 2 in acquiring a Company: Hire an independent accounting firm to perform due diligence along with a crap load of lawyers. HP hired KPMG, another one of the Big 4 firms.

If neither accounting firm knew about this - major fraud and collusion existed. And yes, HP is blaming both of the firms.
 
IndyColtsFan

IndyColtsFan

Lifer
Sep 22, 2007
33,656
687
126
Keep in mind, HP's board is one of the worst boards in America (and Meg was on it). Hiring Leo Apotheker is evidence of that, especially when everything fell apart and board members admitted they hadn't even met the guy before hiring him.
 
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Hugo Drax

Hugo Drax

Diamond Member
Nov 20, 2011
5,647
47
91
sygyzy said:
Is HP/Autonomy the Enron of the computing world?
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No, think more ZZZZ Best of the computing world.

Anyhow Aquisitions are really a way of insiders profiting at the expense of Common shareholders.

Fat sloths like HPQ buy up companies for lots of money so that Middle managers get bonuses, new VPs get minted. (BTW write downs on goodwill are over 18billion now, dont forget the EDS stinker)

Thanks to these aquisitions, Fiefdoms in the company can be created so they can hire new muddle managers which cash in and control their little own world, they can also make the Parent company look like it is growing so they can fudge the numbers for the next quarter so they can cash in on stock options.

Stock options that further dilute shareholder equity, but wait then BOD/CEO announce a GREAT! share buyback that will enhance returns. :)

Even fund managers make out, they stuff employee 401Ks with these stinkers and get a 2-3% management fee for the favor, in addition to other "Gifts from underwriters" Think of all the poor saps who laugh at the downfall of FB stock not realizing that someone filled there 401K with FB :)



BTW these "Auditing firms" like KPMG. The don't send their seasoned partners to audit these companies, they are too busy in boxseats or playing golf, whining and dining the BOD and top level executives for business, they always send the fresh out of college grads to do the work, most who barely have any experience in the industry. No way those wet behind the ear kids will be able to decipher some of the large tomes filled with complex spreadsheets and notes handed down by management for auditing.
 
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sdifox

sdifox

No Lifer
Sep 30, 2005
94,998
15,121
126
HP : Lets get rid of our core competency and explore new markets...
 
Ns1

Ns1

No Lifer
Jun 17, 2001
55,413
1,570
126
Fmr12B said:
Step 1 in acquiring a Company: Review their audited financial statement. Deloitte was their auditor is is one of the Big 4 firms.

Step 2 in acquiring a Company: Hire an independent accounting firm to perform due diligence along with a crap load of lawyers. HP hired KPMG, another one of the Big 4 firms.

If neither accounting firm knew about this - major fraud and collusion existed. And yes, HP is blaming both of the firms.
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mind = blown.

BTW these "Auditing firms" like KPMG. The don't send their seasoned partners to audit these companies, they are too busy in boxseats or playing golf, whining and dining the BOD and top level executives for business, they always send the fresh out of college grads to do the work, most who barely have any experience in the industry. No way those wet behind the ear kids will be able to decipher some of the large tomes filled with complex spreadsheets and notes handed down by management for auditing.
Click to expand...

This is why you have college kids doing the maggot work with management doing the analysis. somebody fucked up bad here though.
 
R

rchiu

Diamond Member
Jun 8, 2002
3,846
0
0
Heh, don't laugh at HP, it's like a true representation of how America has turn into.

In the early years, it was a true innovator, the best in what it does. Truly precise measuring instruments, pioneering in semiconductor, small computer and calculator. They were hardcore engineers, inventors and dedicated in what they did.

Now what are they? Bunch of big talk executives with no ideas about technology. They don't even know what the hell they are good at or what business they are in. They can't make up their mind if they want to be the best in hardware, software, mobile, or consulting services. They lost all the know how in making any pioneering technology, they don't even know what is technology anymore. I mean they are a technology company, when they buy Autonomy, value the technology for Christ's sake and not cashflow with bunch of accountants.

It's a sad story of a once proud American company. Kinda like a once proud country....
 
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