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FBI Reportedly Begins Probe Into HP/Autonomy Deal

This article is more than 10 years old.

The FBI has begun looking into Hewlett-Packard's allegations of significant accounting irregularities in connection with the company's acquisition of the U.K.-based software company Autonomy, Bloomberg reports, citing "a person familiar with the matter."

In disclosing the allegations yesterday, HP said it was providing information on the situation to both the SEC and the U.K.'s Serious Fraud Office. Bloomberg says the SEC asked the FBI for help on the matter.

HP yesterday took an $8.8 billion non-cash charge in connection with the $11.1 billion acquisition of Autonomy. HP said that it "now believes that Autonomy was substantially overvalued at the time of its acquisition due to the misstatement of Autonomy’s financial performance, including its revenue, core growth rate and gross margins, and the misrepresentation of its business mix."

HP on Tuesday fell $1.59, or 12%, to $11.71, to a new 10-year low; the company's market cap is down to $23 billion.