("Autonomy Board To Recommend H-P Takeover To Shareholders," at 8:08 p.m. ET, misstated the deal value in the second paragraph. The correct version follows:)
DOW JONES NEWSWIRES
Tech company Hewlett-Packard Co. (HPQ) and U.K. software company Autonomy Corp. (AUTNY, AU.LN) late Thursday said Autonomy's board would recommend shareholders accept H-P's takeover offer, quickly reaching an accord just hours after news of the companies' talks had leaked.
In a press release, the Autonomy board said it intends to unanimously recommend shareholders accept H-P's offer of GBP25.50 ($42.11) per share. The companies said that offer values Autonomy at about GBP7.09 billion ($11.7 billion) on a fully diluted basis.
The release said Autonomy's directors also entered "irrevocable undertakings" to accept the offer on behalf of their own holdings, representing a total of about 9.1% of the company's share capital.
News of their purchase talks between the two surfaced earlier Thursday in reports based on people familiar with the matter, prompting both companies to slowly confirm various elements of the deal. Autonomy had confirmed it was in talks with H-P, while H-P released the GBP25.50-a-share offer figure as it announced third-quarter results and a slew of operational changes.
After hours, H-P shares were down 9.8% at $26.63. The company also announced it was exploring a possible spinoff of its personal-computer business, reported a modest increase in third-quarter earnings and offered a weak outlook for the current quarter and year.
-By Joan E. Solsman, Dow Jones Newswires; 212-416-2291; [email protected]