HP rejects takeover offer from Xerox

HP rejects takeover offer from Xerox

HP rejects takeover offer from Xerox

The company also shared the letter that accompanied Xerox's offer.

HP Inc said on Sunday it was open to exploring a bid for United States printer maker Xerox Corp after rebuffing a $33.5 billion cash-and-stock acquisition offer from the latter as "significantly" undervaluing the personal computer maker. HP, as well as Xerox, earn a chunk of their income from selling printers and related equipment.

"In reaching this determination, the board also considered the highly conditional and uncertain nature of the proposal, including the potential impact of outsized debt levels on the combined company's stock", HP added.

But HP signaled it could remain open to a possible consolidation.

Discuss on our Facebook page, HERE. Zacks Investment Research raised Xerox from a "hold" rating to a "strong-buy" rating and set a $36.00 price target on the stock in a research report on Sunday, November 3rd. We'll keep an eye out for any further updates on this but for now, HP seems to be confident in its current strategy.

HP Inc said on Sunday it was open to exploring a bid for USA printer maker Xerox Corp after rebuffing a $33.5 billion cash-and-stock acquisition offer. Norwalk, Connecticut-based Xerox is one of the biggest sellers of photocopiers, while Palo Alto, California-based HP is one of the world's largest printer makers.

Icahn, who also owns shares in HP, is yet to issue a statement on the latest developments.

Xerox had offered HP shareholders US$22 a share that included US$17 in cash and 0.137 Xerox shares for each HP share, according to the Nov 5 letter.

Activist investor Carl Icahn, who took over Xerox's board previous year together with fellow billionaire businessman Darwin Deason, said in an interview with the Wall Street Journal last week that he was not set on a particular structure for a deal with HP, as long as a combination is achieved. FMR LLC now owns 1,250,108 shares of the information technology services provider's stock valued at $39,979,000 after acquiring an additional 977,310 shares in the last quarter.

Very last week, it appeared that a Xerox acquisition of HP took a move closer to reality when activist trader Carl Icahn informed the Wall Road Journal that he had obtained 4.24% of HP's fantastic inventory, to go along with the 10.6% he owns in Xerox. Little over a year later, it wrote off $8.8 billion, $5 billion of which it put down to accounting improprieties, misrepresentation and disclosure failures.

HP continues to see itself as a competitor at the retail level - with products such as ink and printers - but there isn't much upside to this side of the business, he said.

"HP announced in October that it will cut between 7,000 and 9,000 jobs by the end of fiscal 2022 as part of a broader restructuring plan that it estimates will save $1 billion a year".

Xerox boss John Visentin recently said that the merger could save both companies $2bn a year.

Notícias recomendadas

We are pleased to provide this opportunity to share information, experiences and observations about what's in the news.
Some of the comments may be reprinted elsewhere in the site or in the newspaper.
Thank you for taking the time to offer your thoughts.