H-P Probe: What Hurd Heard

Sep.22.06 | About: HP Inc. (HPQ)

Excerpt from our One Page Annotated Wall Street Journal Summary (receive it by email every morning by signing up here):

How Much Did H-P CEO Know, And When?

Summary: While HP (NYSE:HPQ) CEO Mark Hurd is acknowledged as the catalyst behind HP’s recent resurgence, investors are becoming concerned that he had more knowledge of HP’s internal leak investigation than previously thought. This concern helped drive down HP shares by 5% yesterday. Although the leak investigation started before Hurd joined HP, a January 2006 email was discovered (written by an HP PR manager) stating he recommended the investigation of five directors. The question is: When did Hurd become aware of the investigations, and did he know (or approve) of the tactics that were employed to gather evidence? Mr. Hurd is scheduled to address these issues today (at HP headquarters), and will join the group of HP executives previously scheduled to face questioning by the House Energy and Commerce Committee. Aside from dealing with the investigation, management experts agree that Hurd’s main focus has to be to convince investors, employees and customers that the scandal will have minimal impact HP’s day to day business. Full WSJ article >
Related links: Previous WSJ summaries on the scandal (dating back to September 6th.) • The Wall Street Journal: Tracking the H-P Controversy • Conference call transcripts: Hewlett-Packard Q3 2006

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