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HP chairman to leave immediately HP chairman to leave immediately
(10 minutes later)
Hewlett-Packard's chairman Patricia Dunn has resigned with immediate effect amid allegations of illegal spying by the US computer firm.Hewlett-Packard's chairman Patricia Dunn has resigned with immediate effect amid allegations of illegal spying by the US computer firm.
Chief executive Mark Hurd said he had accepted the offer from Ms Dunn, who had earlier indicated she would leave in January over the scandal.Chief executive Mark Hurd said he had accepted the offer from Ms Dunn, who had earlier indicated she would leave in January over the scandal.
Mr Hurd described methods used by HP to try and identify who was behind boardroom leaks as "very disturbing". Mr Hurd, described methods used by HP to try and identify who was behind boardroom leaks as "very disturbing".
He said he would take over as chairman of the firm. The under-fire boss will take over from Ms Dunn as chairman.
And later this month he will give evidence to the House of Representatives' Energy and Commerce Committee in Washington.And later this month he will give evidence to the House of Representatives' Energy and Commerce Committee in Washington.
Undercover plansUndercover plans
A report from HP's lawyers on how the internal inquiry was conducted revealed that surveillance had been carried out on journalists and that emails with tracer systems had been set up to try and lead the company to the source of the leak. Mark Hurd was apologetic and is under pressureA report from HP's lawyers on how the internal inquiry was conducted revealed that surveillance had been carried out on journalists and that emails with tracer systems had been set up to try and lead the company to the source of the leak. Mark Hurd was apologetic and is under pressure
Plans, including a PowerPoint presentation, had also been drawn up for possible undercover investigations at the offices of media outlets, including the Wall Street Journal.Plans, including a PowerPoint presentation, had also been drawn up for possible undercover investigations at the offices of media outlets, including the Wall Street Journal.
However HP said there had been no evidence that these proposals had been executed.However HP said there had been no evidence that these proposals had been executed.
There was also no indication that investigators had impersonated people to gain access to their telephone records, the lawyers said.
"I extend my sincerest apologies to those journalists who were investigated and to everyone who was impacted," Mr Hurd said as he faced the media for the first time since the scandal broke. He refused to answer questions."I extend my sincerest apologies to those journalists who were investigated and to everyone who was impacted," Mr Hurd said as he faced the media for the first time since the scandal broke. He refused to answer questions.
ViolationViolation
HP shares gained 0.7% to $34.62 on Friday, having fallen 5% on Thursday on speculation that the investigation was focusing on the possibility that Mr Hurd may have known about the alleged actions.HP shares gained 0.7% to $34.62 on Friday, having fallen 5% on Thursday on speculation that the investigation was focusing on the possibility that Mr Hurd may have known about the alleged actions.
But while the scandal is tarnishing the computer and printer maker's reputation, Mr Hurd said he expected the firm's operations would "remain untouched by this whole thing".
Hewlett-Packard has admitted that investigators hired to look into the leaks obtained phone call records of HP board members, staff and journalists by pretending to be them.Hewlett-Packard has admitted that investigators hired to look into the leaks obtained phone call records of HP board members, staff and journalists by pretending to be them.
The practice - known as "pretexting" - is a common one among private investigators but tests the limits of California state laws.The practice - known as "pretexting" - is a common one among private investigators but tests the limits of California state laws.
Prosecutors believe it violates laws covering identity theft and unauthorised access to computer data.Prosecutors believe it violates laws covering identity theft and unauthorised access to computer data.