SEC Looking Into Hurd's Exit From HP

The Securities and Exchange Commission is reportedly investigating the circumstances of Mark Hurd leaving CEO post at Hewlett-Packard.
By Michael Baron ,

NEW YORK (

TheStreet

) -- The

Securities and Exchange Commission

is reportedly investigating the circumstances of Mark Hurd leaving CEO post at

Hewlett-Packard

(HPQ) - Get Report

.

The

Wall Street Journal

, citing people familiar with the situation, said the regulator has embarked on a "broad inquiry," including the possibility that Hurd improperly shared inside information about HP's plans to acquire

Electronic Data Systems

. The

article

says the SEC is looking at whether Hurd passed on information about the EDS deal -- a $13.9 billion acquisition first disclosed in May 2008 -- to an HP contractor.

The

Journal

also says the SEC is probing the possibility that Hurd submitted "inaccurate expense reports" while at HP and that he may "destroyed computer evidence" related to his leaving the company this summer.

HP announced Hurd's

surprise resignation on Aug. 6

, saying the decision was related to an investigation of sexual harassment. The company

eventually named Leo Apotheker

to succeed Hurd. Apotheker, a former CEO of German software maker

SAP

, took over the post on Nov. 1.

Hurd is

currently a president and director

at

Oracle

(ORCL) - Get Report

, posts he assumed on Sept. 6.

The

Journal

added that it was possible that the SEC would "never bring a case" against either Hurd or HP. The article also quoted a spokesperson for Hurd as saying: "Mark acted properly in all respects," as well as an HP company spokesperson who said the company is cooperating with the probe.

HP shares closed Monday at $41.89, down 7 cents. Year-to-date, the stock is down about 18.5%. On Aug. 5, just prior to the announcement of Hurd's resignation, the shares closed at $46.35, and the 52-week low of $37.32 followed later that month.

--

Written by Michael Baron in New York.

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Michael Baron

.

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Disclosure: TheStreet's editorial policy prohibits staff editors, reporters and analysts from holding positions in any individual stocks.

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