Autonomy’s Lynch defends record as HP confirms Federal probe






LONDON (Reuters) – Mike Lynch, the founder of the software firm sold to Hewlett-Packard last year in a deal tainted by accusations of accounting fraud, said he would defend the company’s accounts to U.S. Federal investigators.


HP confirmed in a filing late on Thursday that the U.S. Department of Justice was investigating Autonomy‘s books.






The PC and printer maker bought the British company for $ 11 billion last year to lead its push into the more profitable software sector.


Autonomy did not deliver the growth expected, resulting in Lynch’s departure earlier this year.


But worse was to come last month when HP wrote off some $ 5 billion of the company’s value and accused its former management of accounting improprieties that inflated its value.


The Silicon Valley company said it had passed information from a whistleblower to the U.S. Department of Justice, the SEC and Britain’s Serious Fraud Office.


“On November 21, 2012, representatives of the U.S. Department of Justice advised HP that they had opened an investigation relating to Autonomy,” it said in the filing.


“HP is cooperating with the three investigating agencies.”


Lynch launched a robust defense of his track record almost immediately after HP made the accusations.


He said on Friday that he was still waiting for a detailed calculation of HP’s $ 5 billion writedown of Autonomy’s value and a published explanation of the allegations.


“Simply put these allegations are false, and in the absence of further detail we cannot understand what HP believes to be the basis for them,” he said in a statement.


“We continue to reject these allegations in the strongest possible terms. Autonomy’s financial accounts were properly maintained in accordance with applicable regulations, fully audited by Deloitte and available to HP during the due diligence process.”


Lynch said he had not been approached by any regulatory authority, but he would co-operate with any investigation and looked forward to the opportunity to explain his position.


HP has refused to concede to Lynch’s demands for more information about the allegations.


“While Dr. Lynch is eager for a debate, we believe the legal process is the correct method in which to bring out the facts and take action on behalf of our shareholders,” it said in response to an open letter from Lynch last month


“In that setting, we look forward to hearing Dr. Lynch and other former Autonomy employees answer questions under penalty of perjury.”


(Reporting by Paul Sandle; Editing by Helen Massy-Beresford)


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Actress Katie Holmes’ Broadway show to close






NEW YORK (Reuters) – Actress Katie Holmes‘ return to Broadway has been cut short, with producers announcing that the play “Dead Accounts” in which she co-stars will close on January 6, nearly two months early.


Holmes, the ex-wife of actor Tom Cruise, played Lorna, a wan, beaten-down woman living with her parents in the five-character play by Theresa Rebeck which opened on November 29 to mostly negative reviews.






No reason was given for the play’s early closing, but media reports said it was earning only a fraction of its box office potential.


Many reviewers said Holmes acquitted herself alongside a roster of Broadway veterans, who included Tony-winning actor Norbert Leo Butz as the brother who returns to his Midwestern family and unleashes havoc in the comedy.


The New York Daily News said “she throws herself gamely into her second Broadway show … (but) Holmes’ efforts add up to zilch.”


Most critics laid blame on an undeveloped, sketchy play by the author of last season’s better-received “Seminar.”


Holmes, 34, reached a high-profile divorce settlement with Cruise last summer. She lives in New York with her young daughter, Suri. Holmes will co-star in an upcoming film which will be a modernization of Chekhov’s “The Seagull” along with Allison Janney and William Hurt.


(Reporting by Chris Michaud; Editing by Patricia Reaney and Vicki Allen)


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Obama: “modestly optimistic” fiscal cliff deal can be reached









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2 arrested after Guinea treasury chief killed






CONAKRY, Guinea (AP) — Officials in the West African nation of Guinea say they’ve arrested two suspects in the case of the killing of the country’s treasury chief, who was shot to death nearly two months ago.


Authorities paraded the pair in front of journalists Friday. Aissatou Boiro was killed as she was driving home. She had launched an investigation into the loss of 13 million francs ($ 1.8 million) which went missing from the state coffers.






The government says the suspects were found with Boiro‘s computer memory stick and mobile telephone.


The men denied any involvement in her slaying and said a friend had given them the items.


Boiro’s colleagues say she had zero tolerance for corruption and was intent on putting an end to the mismanagement of state funds.


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Senate leaders aim to craft fiscal bill by Sunday


WASHINGTON (Reuters) - U.S. Senate leaders are working to craft legislation by Sunday that averts the year-end "fiscal cliff" of tax hikes and spending cuts, but many details needed to be worked out after a crucial meeting with President Barack Obama on Friday.


U.S. Senate Democratic leader Harry Reid and his Republican counterpart Mitch McConnell, termed the meeting "constructive" and "positive" and said they would keep working on trying to find a solution over the weekend.


After adjourning on Friday, Reid he would probably not call the Senate back into session until about 1 p.m. EST/ 1800 GMT on Sunday to give leaders time to hash out a deal.


"We are engaged in discussions, the majority leader and myself and the White House, in the hopes that we can come forward as early as Sunday and have a recommendation that I can make to my conference and the majority leader can make to his conference," McConnell said on the Senate floor.


"So we'll be working hard to try to see if we can get there in the next 24 hours. So I'm hopeful and optimistic," he added.


An aide to House of Representatives Speaker John Boehner said it was agreed at the White House meeting that the Senate should act first.


"The speaker told the president that if the Senate amends the House-passed legislation and sends back a plan, the House will consider it - either by accepting or amending," the aide said.


However, Reid said it would be difficult to craft a solution that can win passage in both the House and Senate, adding that it involves "big numbers."


"Whatever we come up with is going to be imperfect," Reid said. "Some people aren't going to like it. Some people will like it less. But that's where we are and I feel confident that we have an obligation to do the best we can."


(Reporting By David Lawder, Rachelle Younglai; editing by Christopher Wilson)



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NORAD Santa trackers draw record number of phone calls, social media followers






PETERSON AIR FORCE BASE, Colo.NORAD says it drew a record number of phone calls and social media followers during its NORAD Tracks Santa operation on Christmas Eve.


The North American Aerospace Defence Command said Friday volunteers answered more than 114,000 calls, up 12,000 from 2011.






NORAD’s Santa Facebook page had more than 1.2 million followers, up from about 1 million last year. More than 129,000 people followed on Twitter, up from 101,000 last year.


NORAD got 11,000 emails, up from 7,700 in 2011.


More than 1,250 volunteers answered phone calls, including first lady Michelle Obama.


NORAD Tracks Santa began in 1955 when a newspaper listed the wrong number for children to call Santa. They wound up calling the Continental Air Defence Command, NORAD’s predecessor.


The operation is based at Peterson Air Force Base, Colo.


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It’s husband No. 3 for actress Kate Winslet






NEW YORK (AP) — Kate Winslet has tied the knot again.


The Oscar-winning actress wed Ned Rocknroll in New York earlier this month. The private ceremony was attended by Winslet‘s two children as well as a few friends and family members, her representative said Thursday.






It is the third marriage for the 37-year-old Winslet. She was previously married to film directors Jim Threapleton and Sam Mendes.


The 34-year-old Rocknroll, who was born Abel Smith, is a nephew of billionaire Virgin Group founder Richard Branson.


The couple had been engaged since last summer.


Winslet won a Best Actress Oscar for her performance in the 2008 film “The Reader.”


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State’s first flu death is Tulsa County resident






A Tulsa County resident between the ages of 19 and 64 is the first person in Oklahoma to die from the flu this season.

Since Sept. 30 there have been 24 hospitalizations due to flu reported in Tulsa County, the most for any county in the state.


Oklahoma County has reported 10, according to the Oklahoma State Department of Health.






There have been 75 flu hospitalizations throughout the state. Twenty-one of those were reported last week. The age range with the most hospitalizations was 65 and older with 28. Children under 4 accounted for 20 cases, according to the department.


Nationally 1,013 people have been hospitalized and eight children have died, according to the Centers for Disease Control and Prevention.


Flu activity has been increasing, particularly in the south central and southeastern regions of the county. Oklahoma reported regional flu activity last week while 29 states had widespread activity, according to the CDC.


6419e  basic States first flu death is Tulsa County resident


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China tightening controls on Internet






BEIJING (AP) — China‘s new communist leaders are increasing already tight controls on Internet use and electronic publishing following a spate of embarrassing online reports about official abuses.


The measures suggest China’s new leader, Xi Jinping, and others who took power in November share their predecessors’ anxiety about the Internet’s potential to spread opposition to one-party rule and their insistence on controlling information despite promises of more economic reforms.






“They are still very paranoid about the potentially destabilizing effect of the Internet,” said Willy Lam, a politics specialist at the Chinese University of Hong Kong. “They are on the point of losing a monopoly on information, but they still are very eager to control the dissemination of views.”


This week, China’s legislature took up a measure to require Internet users to register their real names, a move that would curtail the Web’s status as a freewheeling forum to complain, often anonymously, about corruption and official abuses. The legislature scheduled a news conference Friday to discuss the measure, suggesting it was expected to be approved.


That comes amid reports Beijing might be disrupting use of software that allows Web surfers to see sites abroad that are blocked by its extensive Internet filters. At the same time, regulators have proposed rules that would bar foreign companies from distributing books, news, music and other material online in China.


Beijing promotes Internet use for business and education but bans material deemed subversive or obscene and blocks access to foreign websites run by human rights and Tibet activists and some news outlets. Controls were tightened after social media played a role in protests that brought down governments in Egypt and Tunisia.


In a reminder of the Web’s role as a political forum, a group of 70 prominent Chinese scholars and lawyers circulated an online petition this week appealing for free speech, independent courts and for the ruling party to encourage private enterprise.


Xi and others on the party’s ruling seven-member Standing Committee have tried to promote an image of themselves as men of the people who care about China’s poor majority. They have promised to press ahead with market-oriented reforms and to support entrepreneurs but have given no sign of support for political reform.


Communist leaders who see the Internet as a source of economic growth and better-paid jobs were slow to enforce the same level of control they impose on movies, books and other media, apparently for fear of hurting fledgling entertainment, shopping and other online businesses.


Until recently, Web surfers could post comments online or on microblog services without leaving their names.


That gave ordinary Chinese a unique opportunity to express themselves to a public audience in a society where newspapers, television and other media are state-controlled. The most popular microblog services say they have more than 300 million users and some users have millions of followers reading their comments.


The Internet also has given the public an unusual opportunity to publicize accusations of official misconduct.


A local party official in China’s southwest was fired in November after scenes from a videotape of him having sex with a young woman spread quickly on the Internet. Screenshots were uploaded by a former journalist in Beijing, Zhu Ruifeng, to his Hong Kong website, an online clearing house for corruption allegations.


Some industry analysts suggest allowing Web surfers in a controlled setting to vent helps communist leaders stay abreast of public sentiment in their fast-changing society. Still, microblog services and online bulletin boards are required to employ censors to enforce content restrictions. Researchers say they delete millions of postings a day.


The government says the latest Internet regulation before the National People’s Congress is aimed at protecting Web surfers’ personal information and cracking down on abuses such as junk e-mail. It would require users to report their real names to Internet service and telecom providers.


The main ruling party newspaper, People’s Daily, has called in recent weeks for tighter Internet controls, saying rumors spread online have harmed the public. In one case, it said stories about a chemical plant explosion resulted in the deaths of four people in a car accident as they fled the area.


Proposed rules released this month by the General Administration of Press and Publications would bar Chinese-foreign joint ventures from publishing books, music, movies and other material online in China. Publishers would be required to locate their servers in China and have a Chinese citizen as their local legal representative.


That is in line with rules that already bar most foreign access to China’s media market, but the decision to group the restrictions together and publicize them might indicate official attitudes are hardening.


That comes after the party was rattled by foreign news reports about official wealth and misconduct.


In June, Bloomberg News reported that Xi’s extended family has amassed assets totaling $ 376 million, though it said none was traced to Xi. The government has blocked access to Bloomberg’s website since then.


In October, The New York Times reported that Premier Wen Jiabao’s relatives had amassed $ 2.7 billion since he rose to national office in 2002. Access to the Times’ Chinese-language site has been blocked since then.


Previous efforts to tighten controls have struggled with technical challenges in a country with more than 500 million Internet users.


Microblog operators such as Sina Corp. and Tencent Ltd. were ordered in late 2011 to confirm users’ names but have yet to finish the daunting task.


Web surfers can circumvent government filters by using virtual private networks — software that encrypts Web traffic and is used by companies to transfer financial data and other sensitive information. But VPN users say disruptions that began in 2011 are increasing, suggesting Chinese regulators are trying to block encrypted traffic.


Curbs on access to foreign sites have prompted complaints by companies and Chinese scientists and other researchers.


In July, the American Chamber of Commerce in China said 74 percent of companies that responded to a survey said unstable Internet access “impedes their ability to do business.”


Chinese leaders “realize there are detrimental impacts on business, especially foreign business, but they have counted the cost and think it is still worthwhile,” said Lam. “There is no compromise about the political imperative of controlling the Internet.”


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House back Sunday night, will have 29.5 hours to strike deal on fiscal cliff


President Barack Obama salutes as he returns via Marine One from a Christmas visit with his family in Hawaii, to …Will parachutes be provided? Republican House leaders informed their rank-and-file on a conference call Thursday that they have to be back at work at 6:30 p.m. Sunday – giving them, oh, 29.5 hours to forestall the “fiscal cliff.”


Absent a last-minute compromise, Americans will see across-the-board income-tax hikes and painful federal spending cuts come into force January 1. Some economists fear that, taken together, the measures could plunge the economy into a new recession.


Technically, however, the Congress could vote the cliff into oblivion at any time – either before OR after the income-tax increases and spending cuts are slated to take effect. Republican House Majority Leader Eric Cantor noted on Twitter that lawmakers “may be in session through Wednesday, January 2.”


House Speaker John Boehner told his troops on the conference call that the Senate would have to act first, either by passing, or by amending, legislation the House has already passed to avert the cliff.


“If the Senate will not approve these bills and send them to the president to be signed into law in their current form, they must be amended and returned to the House,” he said, according to a source on the call.

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