HP chief steps down after criticism of botched $11bn deal to buy Autonomy
Nikhil Kumar is The Independent's New York correspondent. He was formerly assistant editor on the foreign desk and has also done a variety of jobs on the city desk, where he wrote about markets, commodities and other business and economics topics.
Friday 05 April 2013
HP, the American technology giant that has been battling to contain shareholder displeasure over its botched deal to buy Autonomy, has shaken up its top ranks, with executive chairman Ray Lane, who was only narrowly re-elected at the company’s annual meeting last month, stepping down from his post.
Mr Lane began leading the HP board in 2010, and has faced criticism for not being vigilant enough when former chief executive Leo Apotheker agreed to pay more than $11bn for Autonomy, only for Mr Apotheker’s successor, Meg Whitman, to announce a massive $8.8bn write-down connected to the transaction last year. HP also made allegations of financial fraud on Autonomy’s part – something that has been vehemently denied by the Cambridge-based company’s founder and former boss, Mike Lynch.
Last night, HP said Mr Lane, who will remain on the board, will be replaced by Ralph Whitworth, the veteran activist investor who was named to the company’s board in 2011. Mr Whitworth will be in the post temporarily, until HP finds a permanent replacement for Mr Lane.
The shake-up extends beyond Mr Lane. Two other directors – John Hammergren and Kennedy Thompson – will step down, the company said.
Both Mr Hammergren and Mr Thompson were on the HP board when it bought Autonomy. “After reflecting on the stockholder vote last month, I’ve decided to step down as executive chairman to reduce any distraction from HP’s ongoing turnaround,” Mr Lane said.
- 1 Woman falls to her death as she celebrates marriage proposal at the edge of Ibiza cliff
- 3 Dad attempts revenge on teenage daughter, plan backfires spectacularly
- 4 Ball pool for adults opens in London
- 5 Amal Clooney gives excellent response to fashion question at European Court of Human Rights
Isis 'throw man off a building for homosexual affair' and beat him to death when he survives
Woman falls to her death as she celebrates marriage proposal at the edge of Ibiza cliff
Boris Johnson claims porn-obsessed Islamic jihadists are 'literally w*****s'
Saudi preacher who 'raped and tortured' his five -year-old daughter to death is released after paying 'blood money'
Ball pool for adults opens in London
9 reasons Greece's experiment with the radical left is doomed to failure
'We would evict Queen from Buckingham Palace and allocate her council house,' say Greens
Have we reached 'peak food'? Shortages loom as global production rates slow
Greece elections: Syriza and EU on collision course after election win for left-wing party
British grandmother Lindsay Sandiford faces execution by firing squad in Indonesia
Liberal Democrat minister defends comments suggesting immigration causes pub closures
iJobs Money & Business
£40000 - £50000 per annum: Recruitment Genius: This is an exciting opportunity...
£30000 - £35000 per annum + Benefits: Ashdown Group: Marketing Manager - Marke...
£13000 per annum: Recruitment Genius: This Pension Specialist was established ...
£23000 - £26000 per annum + Benefits: Ashdown Group: Market Research Executive...