Technology

Feb 11, 2013 11:45 AM by Lauren Molenburg

UK watchdog launches investigation into Autonomy

LONDON (AP) - Britain's accounting watchdog says it is investigating the books of British business software maker Autonomy Corporation in the period before it was bought by Hewlett-Packard Co. in 2011.

In a brief statement Monday, the Financial Reporting Council said it had launched an investigation "into the published financial reporting of Autonomy for the period between 1 January 2009 and 30 June 2011."

The council has the power to impose fines and other sanctions.

HP bought Autonomy for $10 billion in 2011, but later alleged it had been misled into paying a price 64 percent above the firm's market value. In November, HP took an $8.8 billion write-down for the Autonomy acquisition, with more than $5bn of that due to alleged "accounting improprieties".

Former Autonomy CEO Mike Lynch has denied HP's allegations.

(Copyright 2013 The Associated Press. All rights reserved.)

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