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May 20, 2015

HP faces another legal battle

Company has also sold its stake in H3C.

By James Nunns

HP is set to face another legal battle after a small US reseller has sued the company over incomplete transactions.

These transactions form an integral part in HP’s $5bn Autonomy lawsuit, with MicroTech now suing HP’s Autonomy unit for $16.5 million, which is the amount of two software purchases from Autonomy.

The allegation has been made that the company did not receive a software key that would enable it to use the software.

The two software purchases relate to unfulfilled deals, one in 2010 which was supposed to go to the Vatican and one to be sold to HP before the acquisition of Autonomy was complete.

HP has also reportedly sold its 51% stake in the H3C, a Chinese networking business which makes routers, Ethernet switches, and wireless LAN hardware.

The buyer is Tsinghua Unigroup, and while no announcement has been made to disclose the value of the deal, it is estimated that the 51% stake is work £1bn.

HP isn’t the only company which is struggling to get a foothold in China, with other tech companies such as Amazon and Microsoft also facing difficulties.

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