US probes add to strife at Dell and HP
US probes add to strife at Dell and HP
By Kevin Allison in New York
Copyright The Financial Times Limited 2006
Published: September 12 2006 03:00 | Last updated: September 12 2006 03:00
Turmoil at two of the world's biggest computer makers deepened yesterday after Dell and Hewlett-Packard revealed they were the subject of separate investigations by US federal prosecutors.
Dell said it had received a subpoena from the US attorney in southern New York for documents related to financial statements dating back to 2002. The request from federal prosecutors followed a request last month for information by the Securities and Exchange Commission.
The announcement came as the company postponed a meeting with Wall Street analysts, due tomorrow. The meeting had been rescheduled from April after the company said it needed more time to get to grips with stumbles that have led to a string of missed results this year.
Andrew Neff, Bear Stearns analyst, said: "What's most important is having visibility and we're not getting increased visibility."
Dell said investigations by the SEC and internal auditors had uncovered possible flaws in the company's financial statements that may affect previous financial results. Dell's shares fell by 5 per cent before recovering to trade down 1 per cent at $21.44 by midday in New York.
Don Carty, chairman of Dell's audit committee, said: "We are continuing to investigate the matter fully." Dell said it would delay filing its quarterly 10-Q report with US regulators and would suspend its share buyback programme.
Michael Dell, Dell founder and chairman, said the company was co-operating with investigators.
Hewlett-Packard said it had been contacted by the US attorney in northern California regarding a probe into boardroom leaks that exposed a rift at the top. Revelations that private investigators impersonated board members and journalists to obtain private telephone records have prompted calls for the resignation of Patricia Dunn, HP chairman. A meeting to discuss the board's response was set to resume last night after failing to reach a decision on Sunday.
By Kevin Allison in New York
Copyright The Financial Times Limited 2006
Published: September 12 2006 03:00 | Last updated: September 12 2006 03:00
Turmoil at two of the world's biggest computer makers deepened yesterday after Dell and Hewlett-Packard revealed they were the subject of separate investigations by US federal prosecutors.
Dell said it had received a subpoena from the US attorney in southern New York for documents related to financial statements dating back to 2002. The request from federal prosecutors followed a request last month for information by the Securities and Exchange Commission.
The announcement came as the company postponed a meeting with Wall Street analysts, due tomorrow. The meeting had been rescheduled from April after the company said it needed more time to get to grips with stumbles that have led to a string of missed results this year.
Andrew Neff, Bear Stearns analyst, said: "What's most important is having visibility and we're not getting increased visibility."
Dell said investigations by the SEC and internal auditors had uncovered possible flaws in the company's financial statements that may affect previous financial results. Dell's shares fell by 5 per cent before recovering to trade down 1 per cent at $21.44 by midday in New York.
Don Carty, chairman of Dell's audit committee, said: "We are continuing to investigate the matter fully." Dell said it would delay filing its quarterly 10-Q report with US regulators and would suspend its share buyback programme.
Michael Dell, Dell founder and chairman, said the company was co-operating with investigators.
Hewlett-Packard said it had been contacted by the US attorney in northern California regarding a probe into boardroom leaks that exposed a rift at the top. Revelations that private investigators impersonated board members and journalists to obtain private telephone records have prompted calls for the resignation of Patricia Dunn, HP chairman. A meeting to discuss the board's response was set to resume last night after failing to reach a decision on Sunday.
posted by Carlos T Mock @ 7:32 PM
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