New Lynch website ups pressure as HP falls silent

New Lynch website ups pressure as HP falls silent

Source: www.cabume.co.uk


Autonomy co-founder and former CEO, Dr Mike Lynch, has launched a new website in his latest salvo against Hewlett Packard (HP), the company that bought Autonomy for over $10bn and now accuses Dr Lynch and members of his former management team of accounting improprieties in the lead up to the sale in an effort to artificially inflate the company’s value.

 AutonomyAccounts.org, which is actually maintained by Lynch, is designed to be a public point of contact for him and his former team on all issues relating to the accusations levelled at them by HP two weeks ago, accusations the team continue to strenuously deny.

As well as an attempt to provide “clear and transparent information”, represents the beginnings of an effort to reclaim the Autonomy brand which is in danger of suffering longterm damage and repeatedly refers to ‘Autonomy’ and the ‘Autonomy’ team.

The website also emphasises the difference in stances adopted by the two groups since the row began: Lynch and his team making public demands while HP – in stark contrast to when it released the allegations – now conveniently silent on the matter.

HP first made its accusations known to the world, including Lynch, through a press release released on the same day as its full year results, which had the effect of distracting most of the press for at least that day from one of the company’s worst set of results in years.

Lynch, who was pushed out by HP earlier in the year, came out and rejected the accusations and accused HP of completely failing Autonomy by amongst other things increasing product prices by 30 per cent, putting any sales through HP rather than Autonomy and pushing products that were in competition with Autonomy’s own.

He then penned an open letter to HP in which he sought answers to a number of issues including how HP’s extensive due diligence and Autonomy’s auditors managed to miss a $5 billion hole – the price of the HP write down – and why they took so long in reporting a material event, a fact that has pushed HP investors to launch a lawsuit against the firm.

A red faced HP, roundly criticised for obscuring shoddy results with the announcement which Lynch labelled an ambush, has since decided that discretion is the better part of valour other than one statement in response the the Lynch letter.

While Dr. Lynch is eager for a debate, we believe the legal process is the correct method in which to bring out the facts and take action on behalf of our shareholders, says the HP statement.

By contrast the new Lynch website says it will carry information about Autonomy and any public statements made on behalf of the former management team related to the HP issues, adding: The Autonomy team are committed to providing clear and transparent information during this process, and would like to see the issue resolved as quickly as possible.