For business tycoons, tom perkins would be a firstballot shooin. He has earned a fortune, and, boy, does he know how to spend it. [ engine revs, tires screech ] the troubles at hewlettpackard started when thenc. E. O. Carly fiorina was abruptly fired. Out the door. Is that really it was that cold . Thats exactly what happened. Devastated . You had to have been. Of course i was devastated. I was hurt. Welcome to 60 minutes on cnbc. Im lesley stahl. In this edition, we examine the boardroom intrigue at hewlettpackard between 2005 and 2007. It was a tumultuous saga that led to criminal charges, executive firings, accusations of sexism, and lots and lots of fingerpointing. And in the midst of it all, three of the protagonists told me their sides of the story pattie dunn, thomas perkins, and Carly Fiorina. We begin with pattie dunn. It was 2005, and she was appointed chairman of hewlettpackard. Yet just 20 months later, dunn was gone from hp due to her participation in an internal investigation that involved spying on members of the board. Less than a month later, dunn was charged with four felony counts for her role in that investigation. In october 2006, only hours after the criminal charges against her were announced, pattie dunn sat down with me to talk about what happened at hewlettpackard. Let me ask you the obvious question that i think every lawyer whos watching this is asking himself or herself. Why are you giving us an interview right after youve been indicted . Its pretty unusual. So my lawyer tells me. [ chuckles ] well, hes approving of this, isnt he . He is. I have a story to tell. Im innocent. I need people to understand what happened, and im glad to have this chance to do it. Her story involves the investigation into who from the board was leaking confidential information to the press about corporate strategy, hps interest in buying another tech company, even deliberations over who they would hire as c. E. O. The idea that the most sensitive discussions of the board would end up on the front page of the wall street journal was destructive. It destroyed the trust between people, and if they dont trust each other, they cant function as a board. A majority of the board asked dunn to initiate a leak inquiry, which soon ran amuck. [ camera shutters clicking ]. And has made her the public face of one of corporate americas biggest scandals. Were here on a troubled day. Great disappointment here. It is not believable. What in the world were you thinking . Sir. She accepts no responsibility, admits no wrong. At the heart of the case, what did pattie dunn know about the pretexting, or the use of pretenses, to get phone records . Evidence includes a Conference Call, apparently with dunn, during which pretexting was allegedly discussed, and notes of an interview with dunn about the case. Dunn thinks it is probable that she was told, in some circumstances, they may need to use false pretenses. i refute those notes. I was never given a chance to review them. This is not a deposition. This was not recorded. If its going to be used as evidence against me, somebody needs to take my deposition. And perhaps the most serious charge against her involves passing along personal information to the investigators to enable the pretexting. The complaint specifically mentions that you gave the investigators the home phone numbers of your fellow Board Members. I dont remember giving the investigators the home phone numbers of my fellow Board Members, but those are not hard to get within hp. Theyre Public Information within the board infrastructure. At a news conference, an hp lawyer said dunn had instigated and closely monitored the probe, and c. E. O. Mark hurd also weighed in. And he termed the tactics disturbing. Hes the one who pointed the finger at you. Well, thats a mischaracterization of my role. But why would he do that . Youd have to ask him, lesley. Im not gonna speculate on other peoples motivations here. She maintains that, at every step of the way, she relied on senior hp lawyers to ensure that everything was done legally. Isnt it just wrong . Isnt it just ethically wrong forget whether its legal or not to go in and get peoples phone records . People who sit on Public Company boards have a very different attitude about this than probably the general public. First of all, you give up a lot of privacy when you go onto a board. You have to make all kinds of declarations. Your life is much more an open book when you have this kind of a public trust. But what about the reporters . It wasnt just Board Members. It was reporters, as well. That was just wrong. That was wrong. I found out about that on september 6, 2006. The idea that i supervised, orchestrated, approved all of the ways in which this investigation occurred is just a complete myth. Its a falsehood. Its a damaging lie. Coming up, dunn on former hp board member tom perkins. It was a disinformation a classic Disinformation Campaign, and he set the mindset for basically everything thats believed about this right now. Thats ahead, when believed about this right now. Thats ahead, when 60 minutes on cnbc returns. Right now, 7 years of music is being streamed. A quarter million tweeters are tweeting. And 900 Million Dollars are changing hands online. Thats why hp built a new kind of server. One thats 80 smaller. Uses 89 less energy. And costs 77 less. Its called hp moonshot. And its giving the internet the room it needs to grow. This is gonna be big. Hp moonshot. Its time to build a better enterprise. Together. Youre not made of money, so dont overpay for boat insurance. Geico, see how much you could save. And experience the connectivity of the available lexus enform, including the es and rx. This is the pursuit of perfection. In october 2006, just hours after being charged with four felony counts, former hewlettpackard chairman pattie dunn told me that she was innocent of all charges against her. Dunn also claimed that she was the victim of a Disinformation Campaign run by former hp board member thomas perkins. The focus on her started, she says, after the investigation identified board member and Nuclear Physicist jay keyworth as the source of many of the leaks. Another board member, tom perkins, she says, wanted to keep that secret from the full board. Well, they were best friends. They were allies on the board, and i think he thought it was a possibility that the board would say the leaker should resign. He just didnt want that outcome. I dont understand how you have an investigation and theres even a discussion of not revealing who the culprit is. What tom believed was that we would simply tell the leaker never to do it again, then we would inform the board that we had identified the leaker, that he had confessed and agreed he would never do it again. Next item on the agenda. We couldnt reach tom perkins, since he is out to sea on his new boat, said to be the largest and most expensive private sailboat ever built. Hes a Founding Partner of the Venture Capital firm Kleiner Perkins that has bankrolled aol, google, and amazon, among others. Dunn says hes a guy who definitely knows how to get his way, but he couldnt get his way with pattie dunn. She refused to keep that keyworth was the leaker a secret. The board asked keyworth to resign, and in a peek behind the scenes at how things can explode on a board, dunn says perkins walked out in a huff. He turned to me, pointed at me, and said, you betrayed me. He said that several times. You betrayed me, pattie. You said that we would handle this offline, and a good man is being ruined as a result, and he snapped his briefcase shut and stormed out of the room and said, i resign. And one of the other directors said, can we accept his resignation . The general counsel said, yes. He put the motion on the table. It was seconded and passed within seconds. And that was that . That was that. So, he drove off and ended up going onto his megayacht in the mediterranean, and i suspect he thought over the ensuing days that it was just unacceptable that he was off the board, jay was going to be off the board, and i was still chairman. After that, perkins blew the whistle on hps leak investigation, and she says he began a campaign of deceit about her. It was a disinformation a classic Disinformation Campaign, and he set the mindset for basically everything thats believed about this right now. She says he sent out this email disparaging her, and he influenced the media. The newsweek cover that said the boss, which i wasnt, who spied, which i didnt, on her board, is really now fixed in the minds of the public as a result of a campaign to put it there. She even accuses him of bringing his campaign against her to law enforcement. He and his team went to see various agencies of government and lawenforcement agencies. About you . Thats what i am told that thats exactly what they did. A spokesman for perkins confirmed that, indeed, he did go to the s. E. C. , the f. T. C. , the justice department, and the California Attorney general to complain about the tactics used in the leak investigation. If you have enough money and youre willing to spend enough, you can buy and sell somebodys reputation. And youre charging thats what hes done . Thats is what he did. Youre saying, if i understand you, that tom perkins set out to get you . He wanted me off the board. This was to get me off the board. I dont know if he ever thought through the consequences that would go beyond my getting off the board. Well, you said he went to law enforcement. Well that takes it another step. It does take it another step, and here i am today with an indictment over my head. Are you saying hes responsible for that . Well, i dont think id be sitting here today if tom had handled this differently. We have learned that perkins made several settlement demands on hp that the company pay his legal fees, that pattie dunn be forced to resign, and that the company not disparage him or jay keyworth. This is what c. E. O. Mark hurd said on september 12, 2006, in a news release. He said, jay keyworth leaves the board with our best wishes and gratitude. Heres what i have trouble understanding. Everybody says leaks are bad, the leaker is identified, and now theres a settlement with him. Mmhmm. Go figure. [ laughs ] do you understand this . Well, at that point, i think that the company thought it was in the best interests of hp to get tom off its back, so to speak. All rise. Pattie dunn appeared in a san jose courtroom. Shes not just fighting for her reputation. Shes also fighting for her life. This has all happened as she battles stage4 ovarian cancer. You are gonna start a full round of chemotherapy severe chemotherapy day after tomorrow. 8 45 a. M. 8 45 a. M. And youre charged with this. Its just all piling on you at once. And youre so strong. Whats the alternative . Well, breaking down, getting in the back of a closet and sitting there. I can think of lots of things that other people well, the Golden Gate Bridge is always out there. Its not going away. I mean, you just have to fight back. Do you think your illness has made you whats the word philosophical . Definitely. Having a criminal indictment is the last thing i ever expected in my entire life. But if i hadnt had four diagnoses of cancer, i would probably think it was the worst thing that could ever happen to anyone, and i know its not. In march 2007, all criminal charges against pattie dunn were dropped by the California Attorney generals office. Her battle against cancer continued until december 2011, when pattie dunn died at age 58. Coming up, tom perkins gives us a tour of his megayacht and talks about his relationship with pattie dunn. How much did you hate her . I dont hate her. Come on. I know you couldnt stand her. I disagreed profoundly with the direction she was pulling hewlettpackard. The captain of capitalism, hewlettpackard. The captain of capitalism, next on 60 minutes on cnbc. At a dry cleaner, we replaced people with a machine. What . Customers didnt like it. So why do banks do it . Hello . Hello . if your bank doesnt let you talk to a real person 24 7, you need an ally. Hello . Ally bank. Your money needs an ally. At farmers we make you smarter about insurance, because what you dont know can hurt you. What if you didnt know that its smart to replace washingmachine hoses every five years . What if you didnt know that you might need extra coverage for more expensive items . And what if you didnt know that teen drivers are four times more likely to get into an accident . sup the more you know, the better you can plan for whats ahead. Talk to farmers and get smarter about your insurance. We are farmers bum pa dum, bum bum bum bum help the gulf when we made recover and learn the gulf, bp from what happened so we could be a better, safer energy company. I can tell you safety is at the heart of everything we do. Weve added cuttingedge technology, like a new deepwater well cap and a stateoftheart monitoring center, where experts watch over all drilling activity twentyfourseven. And were sharing what weve learned, so we can all produce energy more safely. Our commitment has never been stronger. The great outdoors. And a great deal. Thanks to dad. gasp nope. Aw guys grrrr lets leave the deals to hotels. Com. nice bear ooo that one nice got it oh my gosh this is so cool awesome perfect yep, and no angry bears. The Perfect Place is on sale now. Up to 30 off. Only at hotels. Com if there were a hall of fame for business tycoons, tom perkins would be a firstballot shooin. The firm he founded, Kleiner Perkins caufield byers, promoted startup capital for Companies Like amazon. Com, netscape, and google, among many others. And as we reported in 2006, he was also at the center of hewlettpackards boardroom battles in the early 2000s. One of those triggered a confrontation that brought to light how hp was spying on its own Board Members and journalists and led to the resignation of the companys chairman, pattie dunn. As we reported in november 2007, perkins has a reputation for being brilliant, willful, and wealthy, lacking nothing but perhaps a tad of humility. This is tom perkins own personal megayacht, the maltese falcon, the Worlds Largest privately owned sailboat what one magazine called a big boatload of ego. Somebody has to have it, right . Someone someone has to do this. Why not me, right . Why not me . [ laughs ] when i first saw the boat, it was moored off the coast of italy. Isnt she beautiful . Shes also a technological breakthrough. The masts stand 192 feet tall, weigh 25 tons each, and are made of carbon fiber. The b1 bomber is made out of carbon fiber. Except for the american air force, ive purchased the most carbon fiber of anybody ever. On board, the boat is no less spectacular. There you go. Youre aboard. Or over the top. On a scale of 1 to 10, its a 12. You know, id never had the sense of how long the boat is until now. Its your typical footballfieldsized yacht, you know . [ laughs ] inside, there were two 1,800horsepower engines, 11,000 square feet of living space, and his crew of 20 includes a gourmet chef and a team of stewards and stewardesses. Keep that sugar away from me. So, heres the wheelhouse. The wheelhouse. Come on in. The wheelhouse, or captains bridge, is command central for the boats technological wizardry. This is my invention. This is my baby, and im gonna teach you how to sail this boat. Yeah, right. Perkins designed the software himself for the computers that make sailing on the falcon as easy as playing a computer game. Real simple. Real simple. You know the wheel a skipper uses to steer a boat . Well, the falcons is much smaller than that. Im gonna turn this knob. This knob turns the masts so that the wind, signified by the yellow arrows, blows into the sails at the perfect angle. Turn the masts like that. And youre gonna tell me when to stop. Yeah, just keep going. Keep going. Oh, the arrow keeps shifting. Little more. Youre about there. Okay. You like that . Okay. Say start. And its doing it. The mast is turning. Next, he showed me how to unfurl the boats 15 sails, a job that would take about 80 deckhands an hour on a traditional sailboat. All it takes on the falcon is five minutes and the touch of a screen. Lets go sailing. Lets go sailing. And just like that, the sails, housed inside those hollow carbonfiber masts, begin to unfurl all 26,000 square feet of them. Thats over half an acres worth of sail. Okay. That wasnt too hard. No. The maltese falcon embodies all the grandeur of a 19thcentury clipper ship. Its also one of the biggest, fastest, and most hightech sailboats on the high seas a triumph of science, vision, and money. So, how much did it cost you . [ laughs ] the rule of thumb, lesley, is that a big yacht costs about 1 million a meter. And how many meters are we talking about . Were 88 meters. Oh, i know it costs more than 88 million. Ive heard about 150 million, but ive also heard 300 million. No. Not 300 million. Okay. Thats too much. Thats too much. Why wont you tell us . Youve told us everything else. You dont seem to be embarrassed about everything else. [ laughs ] im embarrassed about that. About how much it costs . Yeah. Because. . Theres the homeless and charity, and theres lots of things you could do with that money that would improve the world, right . Oh, good point that you bring up yourself. Yeah. Wow. So, you know, how selfish is this guy . I guess is the criticism. So, the answers pretty selfish, but im just not gonna put a number on it. Why did it have to be the biggest boat . Lesley, i could give you some technical reasons on why it really has got to be big to work right, but i just wanted the biggest boat. Lets admit it. Its ego. What . I mean. Do i have an ego . Yes. We know that already. Is it big . Yes. Coming up, turmoil at hewlettpackard. Just slammed your briefcase cover and walked out. I mean, that sounds like a hissy fit of some kind. I was angry. Theres no question. So, it was like a little minitantrum . It was 90 minutes of very intense debate. I would say i was emotional more than angry, although thats maybe the same thing. Thats next when maybe the same thing. Thats next when 60 minutes on cnbc returns. [ male announcer ] come to the lexus golden opportunity sales event and choose from one of five lexus hybrids thats right for you, including the lexus es and ct hybrids. This is the pursuit of perfection. [ laughs ] up high up high [ sighs ] [ chuckles ] yo, give it up, dude up high. Ok. Up high.