HP's Stock Price on Electronic Exchange Direct Edge Lowered Closing Quote
Aug. 9 (Bloomberg) -- Abhey Lamba, managing director at International Strategy & Investment Group, talks about the departure of Hewlett-Packard Co. Chief Executive Officer Mark Hurd and outlook for the company. Hurd resigned Aug. 6 after an investigation found inaccurate expense reports and a personal relationship with a contractor named Jodie Fisher, who is a former actress and reality TV contestant. Lamba speaks with Erik Schatzker on Bloomberg Television's "InsideTrack." (Source: Bloomberg)
Aug. 6 (Bloomberg) -- Aaron Rakers, an analyst at Stifel Nicolaus & Co., talks with Bloomberg's Lizzie O'Leary and Matt Miller about today's resignation by Hewlett-Packard Co. Chief Executive Officer Mark Hurd and the outlook for the company. Hurd resigned as CEO after an investigation found he had a personal relationship with a contractor who received pay from the company that wasn’t business-related. Chief Financial Officer Cathie Lesjak will take over as interim CEO. (Source: Bloomberg)
Aug. 6 (Bloomberg) -- Hewlett-Packard Co. said Mark Hurd has decided with the Board of Directors to resign as chief executive officer immediately. The board has appointed Chief Financial Officer Cathie Lesjak, 51, as CEO on an interim basis. Hurd is stepping down following an investigation by outside legal counsel and the general counsel’s Office surrounding a claim of sexual harassment against Hurd and HP by a former contractor to HP. The investigation determined there was no violation of HP’s sexual harassment policy, but did find violations of HP’s standards of business conduct. Bloomberg's Cris Valerio, Matt Miller, Lizzie O'Leary, Adam Johnson and Dominic Chu report. (Source: Bloomberg)
Hewlett-Packard Co.’s closing price was misreported on Aug. 6 because Direct Edge Holdings LLC reported trades without the correct code attached, making it appear the computer maker’s stock tumbled before saying its chief executive officer quit.
The New York Stock Exchange calculated the end-of-day value as $46.30, reflecting orders submitted before 4 p.m. New York time. Five minutes later, HP said CEO Mark Hurd resigned after a sexual-harassment probe, sending the shares as low as $39.92 in extended trading. On some late transactions, Direct Edge failed to assign the “Form T” code that shows they happened after hours, automatically shifting the market-wide closing price to $41.85, according to data compiled by Bloomberg.
Bloomberg LP, the parent of Bloomberg News, updated its records to show HP finished last week at $46.30. Closing prices reported by data vendors such as Bloomberg and Thomson Reuters Corp. are usually based on market prices as of 4 p.m. While an extended trading session continues on electronic venues including Direct Edge’s EDGX platform until 8 p.m., that pricing isn’t supposed to be recorded as the end-of-day level.
“It appears that some after-hours trades on the EDGX Exchange were inadvertently marked in a way that data vendors interpreted them as being eligible for calculating the composite close,” William Karsh, the chief operating officer of Direct Edge, said in an e-mailed statement. “We are currently working to rectify the situation.”
Goldman Sachs, Knight
Direct Edge converted its two trading venues, EDGX and EDGA, into exchanges in July. The Jersey City, New Jersey-based company is majority owned by the International Securities Exchange, Goldman Sachs Group Inc., Citadel Investment Group LLC and Knight Capital Group Inc.
“The NYSE closing price was correct,” Richard Adamonis, a spokesman for New York-based NYSE Euronext, wrote in an e-mail.
The official last price for U.S. shares is disseminated to data vendors such as Bloomberg and Reuters by the industry’s securities information processors. In the case of NYSE-listed companies such as HP, the SIP is run by NYSE Euronext.
HP shares changed hands for $43.25 at 6:34 a.m. New York time today, down 6.6 percent from Aug. 6.
To contact the reporters on this story: Nick Baker in New York at nbaker7@bloomberg.net; Nina Mehta in New York at nmehta24@bloomberg.net.
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