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Computer giant hits out at Cambridge software company

Computer giant Hewlett-Packard Credit: PA

Bosses at computer giant Hewlett-Packard took a £5.5bn hit after accusing former staff at a Cambridge software company it bought last year of misleading investors.

HP bought Autonomy in a £7.1 billion deal that saw its founder Dr Mike Lynch pocket around £500 million.

The American firm alleges that former members of Autonomy's management fiddled accounts in a bid to "mislead investors and potential buyers" and has referred the matter to the Serious Fraud Office (SFO).