MphasiS stock falls on majority owner Hewlett-Packard's $8.8 billion writedown
Mumbai: Shares in software and back office provider MphasiS fell 2.8 per cent after majority owner Hewlett-Packard took a $8.8 billion writedown after alleging a massive accounting scandal at its British software unit Autonomy.The news sent HP's shares, which owns a 60.5 per cent stake in MphasiS, plunging 12 per cent to a 10-year low.Hewlett-Packard said on Tuesday it took an $8.8 billion charge related to its acquisition of software firm Autonomy, citing "serious accounting improprieties," as it swung to a fourth-quarter loss.
HP said that personal computer sales shrank again and its quarterly revenue fell 6.7 percent. HP's stock dropped 6.6 percent in premarket trading.The Silicon Valley technology company, in the midst of a multiyear turnaround plan, said the charge is linked to the "associated impact of those improprieties, failures and misrepresentations on the expected future financial performance of the Autonomy business over the long-term." HP said the accounting issues happened prior to its acquisition ofAutonomy in 2011 for $11.5 billion. HP had been criticized by analysts for overpaying.
Copyright @ Thomson Reuters 2012 http://profit.ndtv.com/news/market/article-mphasis-stock-falls-on-majority-owner-hewlett-packards-8-8-billion-writedown-313571
No comments:
Post a Comment