Spymaster Patty Dunn, #17 on Forbes List of Powerful Women

Newsweek is reporting that HP has called an emergency board meeting.

Read the reports on this fiasco where Chairwoman Patricia “Patty” Dunn is at the center of a faux “spy” case. Reporters phone records were illegally obtained resulting in all sorts of legal and SEC violations and the sudden resignation of Tom Perkins as well as other issues. There is no way — after a corporate witch hunt that results in spying that targets a New York Times reporter, Fortune Magazine reporter, CNET reporters and others — that this woman stays in office.

Whether she was set up to fail is another issue. Her relationship to Carly Fiorina, who was not a favorite of the valley boys, seems problematic. This invites an essay in itself (later).

But for now I can assure you that there is no way they can keep her in this job. This was no minor misstep and could possibly create all sorts of long term problems for her and the company if she sticks around beyond Sunday. An 8K was already filed improperly after the Perkins resignation since no honest explanation was given as is required by the SEC. This is grounds for immediate dismissal in itself.

SO why the brown-nosing and soft-peddling by various analysts regarding this situation? Read this Marketwatch article quoting various sources.

What planet are these people from:

Crawford DelPrette, senior vice president of research at IDC, said that unless it comes out that Dunn had firsthand knowledge, or gave approval of any illegal activities before or as they were happening, it’s highly unlikely the H-P board will seek her removal. “I think the board will support Patty because she has clearly emerged as a strong board chairman,” DelPrette said. “History will probably look at what she did [to stop the leaks] as important for the board’s authority.”

Are you kidding me? I guess if “support her” means, “Hey, you must resign, although we will say we supported you.”

And this:

Momin Khan, an analyst with Technology Business Research, said that Hurd’s efforts since becoming chief in March 2005 have gone a long way toward restoring investor confidence and the H-P corporate culture. Khan added that in its own way, Dunn’s methods of clamping down on corporate leaks actually fits in with the company’s turnaround.

Fits in? Spying on John Markoff of the New York Times fits in? Perhaps these experts should familiarize themselves with civil rights violations as well as SEC rules.

“What’s really weird,” Markoff told me, “Is that Patty Dunn gave the eulogy at my uncle’s funeral.”

Maybe he can give one at hers. She’s toast.

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