/// Autonomy Founder Mike Lynch Rejects HP Charges, Alleges Mismanagement
I just got off the phone with Mike Lynch, the founding CEO of Autonomy. As you might expect, he has a different view of events concerning the allegations leveled by Hewlett-Packard today concerning Autonomy’s role in an $8.8 billion write-down . Calling from the U.K., Lynch said that he had been “ambushed” by HP’s accusations, and that he hasn’t been contacted in any official capacity by HP, its lawyers or anyone else, and that the first he heard about the accusations against Autonomy management was via the press release. He went on to accuse HP of mismanaging Autonomy and essentially sabotaging its performance after the $11.7 billion acquisition closed. He said that once Autonomy was in the HP tent, HP managers arbitrarily added a 30 percent markup on Autonomy software, which had the effect of driving some longtime customers away. In other cases, Lynch said, HP salespeople were paid commissions to sell third-party products that competed with Autonomy, but no commissions to sell Autonomy products. Below is a transcript of our conversation: AllThingsD: Mike, thanks for the call. I presume you have a different view of events concerning the accusations leveled by HP against your former company, Autonomy. Lynch: Basically, we reject completely the assertion of HP. It’s completely wrong. The reality of the situation is that when HP bought Autonomy it had hundreds of people involved in due diligence, which was described at the time as “meticulous.” And KPMG, Barclays and Perello were all involved there.
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