PGGM also on behalf of other shareholders reached a settlement with Hewlett-Packard, to compensate for price losses after the failed acquisition of British software company Autonomy. The pension investor expects 25% of the damage of customers to get back.
The total amount of the settlement is $ 100 million, but PGGM have to share that amount with other aggrieved shareholders. In addition, the settlement still to lawyers’ fees.
According to PGGM 25% is a relatively good result in a case like this. PGGM will not go into the height of the lawyer bill, nor the absolute amount of compensation that it expects to receive.
In 2013 was named a total loss amount of $ 35 million at a hearing in the US, would then translate into a cost of about $ 9 million.
Acquisition
HP paid in the summer of 2011, $ 11 billion for Autonomy, but had end of 2012, $ 8.8 billion write-off on that purchase. There were “irregularities” discovered in the accounts. Sales were therefore overestimated considerably.
HP’s share price fell between early August 2011 and beginning in December 2012 from $ 33 to $ 14.
The judge argued that HP knowingly PGGM has issued misleading statements about the acquisition. “The board spoke highly accurate due diligence, while appeared to be running on of 25 sales contracts and statements of the British accountant,” said PGGM lawyer Femke Hendriks. Even after the acquisition, HP has concealed information, says PGGM. Hendriks: “In May 2012 HP issued a statement in which it only spoke of several challenges in” scaling up “the activities of Autonomy, while at that time investigated whether there was not substantial overpaid, and there is already a forensic investigation was accounting fraud.
The court allowed but only the last complaint to. The period over which the judge in damages, was also shorter than PGGM had wanted, says the performer.
PGGM was the main plaintiff in the case, partly because it had one of the highest injury rates of parties that reported in court, but also because it itself wanted to take responsibility, says Hendriks.
At that time, therefore no question of other parties who participated in the case. Who can register for the next period for a share of the pot. At the end of 2016, the distribution will be done. Then will only get exactly clear how PGGM.
The settlement is not only prosecute the company HP, but also of the directors surrendered. Other victims are bound by the settlement, unless they opt for a timely opt out.
© Tue Jun 09 18:06:43 EDT 2015 Retirement Pro. All rights reserved.
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