British tech entrepreneur Mike Lynch's body recovered from Sicily yacht wreckage

• Mike Lynch was the founder of enterprise software firm Autonomy.
• Lynch faced a prolonged legal dispute with Hewlett Packard following accusations by the company that he overvalued Autonomy during an $11.7 billion sale.
• HP recorded an $8.8 billion write-down on the value of the company one year after acquiring it.

A source close to the incident informed CNBC that the remains of British entrepreneur Mike Lynch, 59, have been recovered from the wreckage of a yacht that sank near Sicily. This information was previously reported by Sky News.

According to a source who requested anonymity due to the sensitivity of the situation, Lynch's daughter, Hannah, is still missing, despite reports that five bodies have been identified by the Italian coastguard, including Lynch, as having been pulled from the wreck.

On Monday, Lynch, one of the 22 passengers on the Bayesian superyacht, went missing after the yacht capsized while anchored in Porticello, Italy.

On Wednesday, Salvatore Cocina, the head of the civil protection agency in Sicily, confirmed to NBC News that five bodies had been recovered from the wreckage of the yacht. This comes after one person, Recaldo Thomas, a Canadian-Antiguan chef, was confirmed dead earlier this week.

Autonomy, founded by Lynch, was accused by Hewlett Packard of inflating its value during an $11.7 billion sale. As a result, HP took an $8.8 billion write-down on the company's value within a year of the acquisition.

In June, Lynch was found not guilty of fraud charges in a U.S. court after a three-month trial. He was accused of wire fraud and conspiracy for allegedly conspiring to inflate Autonomy's revenue. Lynch maintained his innocence and claimed that HP was responsible for the failed integration of Autonomy.

Invoke Capital, a venture capital firm supporting European tech startups, was founded by Lynch. He emerged as a key voice for the U.K. technology industry, endorsing notable companies such as cybersecurity firm and legal tech firm Luminance.

CNBC has contacted the Italian coastguard and is awaiting a response.

This is a breaking news story, please check back later for more.