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HP faces stock option investigation
March,
2007 In news which may be of interest to users of HP printer cartridges
and HP laser toner cartridges, HP is facing a stock option
investigation following its acquisition of Mercury Interactive
Corporation.The US senate investigation follows allegations that
Mercury mishandled stock options prior to its acquisition by HP; at the
time of HP announcing its purchase last July, stock options problems
were already known.A request was received by HP from a division of the
US senate committee on homeland security and governmental affairs on
February 26th.”It is our understanding that they are interested in
allegations that certain former Mercury officers and directors knew
about and/or benefited from the practice of backdating options,” said
Ryan Donovan, a spokesman for HP.In related HP news, which may be of
interest to users of HP A4 superior laser paper and HP A4 photo gloss
laser paper, in 2006 the firm paid $14.5 million (£7.4 million) to
resolve a civil grievance relating to unfair business practices.HP Says Senate Seeks Options Details
SAN
FRANCISCO (March 07) – Hewlett-Packard Co. said on Friday that a U.S.
Senate subcommittee has asked it for information on stock-option grants
to executives of Mercury Interactive Corp., which HP acquired last
year.HP said it received a request on February 26 from a subcommittee
of the Senate Committee on Homeland Security and Governmental Affairs
seeking details of Mercury’s past executive compensation and stock
option granting policies and procedures, the computer and printer maker
said in a regulatory filing.HP of Palo Alto, California, said it is
preparing to respond to the subcommittee’s request and intends to
cooperate. The company made the disclosure in its quarterly financial
report with the U.S. Securities and Exchange Commission.HP in November
acquired Mercury Interactive, a business software maker, for about $4.5
billion in stock, its biggest acquisition since the $19 billion
purchase of Compaq in 2002.Mercury is among more than 150 companies
involved in internal or federal regulatory or criminal investigations
of past stock option grants that may have been manipulated to give
executives instant paper gains.
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