HP extends Autonomy bid after poor take-up

Technology giant Hewlett-Packard was today forced to extend its $11.7 billion (£7.4 billion) takeover bid for British internet software group Autonomy by another three weeks following a lacklustre take-up of its offer.

At the first closing date yesterday, HP had picked up acceptances from holders of just 41.6% of Autonomy which included the 9.1% already pledged by the British company's directors, one of whom, founder and chief executive Mike Lynch, is its largest shareholder.

Extension of the bid until October 3 could mean there is still time for a rival suitor to come forward, but analysts believe this is unlikely.

One said: "The low take-up is a surprise. You would think people would have bitten HP's hand off to accept the cash bid." Autonomy's shares today rose 5p to 2522p still under the offer price of 2550p.

HP said it had filed submissions to competition authorities in the US, Austria, Germany and Ireland.