BUSINESSWEEK ONLINE : SEPTEMBER 11, 2000 ISSUE
[an error occurred while processing this directive] [an error occurred while processing this directive]
INTERNATIONAL -- EUROPEAN BUSINESS Lernout & Hauspie's Ups and Downs 1997 Microsoft invests $45 million in L&H, giving the Belgian startup instant credibility. The founders sever ties to Flemish Language Valley Fund after revelations that the venture fund was financing some L&H customers. MAY-JUNE 2000 L&H purchases Dictaphone and Dragon Systems for about $1 billion in mostly stock--vaulting it into the global big leagues. JUNE After CEO Bastiaens refuses to break down revenues by region, the company files a statement with the SEC showing that 52% of $59 million first-quarter revenues came from South Korea. JULY Suspecting an attempt to pump up results, investors begin dumping L&H shares. Bastiaens tries to shore up the company's stock price by buying 620,000 shares from founder Jo Lernout at a 12.5% premium. AUG. 8 Newspaper reports allege L&H inflated Korean revenues. Class actions are filed by investors in the U.S. The company asks KPMG to prepare a special audit. AUG. 25 Bastiaens resigns and is replaced by John Duerden, former CEO of Dictaphone. The company's stock falls 9% to $31. DATA: BUSINESS WEEK _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ BACK TO TOP					RELATED ITEMS How Hype Hurt Lernout & Hauspie (int'l edition) TABLE: Lernout & Hauspie's Ups and Downs INTERACT E-Mail to Business Week Online

Copyright 2000-2009, by The McGraw-Hill Companies Inc. All rights reserved. Terms of Use   Privacy Notice