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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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