Xerox Considers Takeover Offer for HP

hawki · Nov 6, 2019

"Xerox Is Considering a Bid for HP...

Xerox Holdings Corp. is considering a cash-stock offer for the $27 billion PC giant HP Inc., the Wall Street Journal reported, a deal that could combine two of the biggest American names in office hardware..."

https://fortune.com/2019/11/06/xerox-hp-bid-merger/

mood · Nov 6, 2019

HP confirms it has received a proposal from Xerox about being acquired
November 6, 2019
https://techcrunch.com/2019/11/06/h...-discussions-with-xerox-about-being-acquired/

Rumors have been flying today about Xerox possibly buying HP Inc., the printer and computer company. The company issued a public statement this afternoon confirming that there are talks ongoing, and that it will do whatever is in the best interest of shareholders.

HP acknowledged there are ongoing discussions between the two companies and that it received an offer letter from Xerox yesterday. What’s odd about this particular deal is that HP is the company with a much larger market cap of $29 billion, while Xerox is just a tad over $8 billion. The canary is eating the cat here.
Here is HP’s complete statement on the situation: [...]
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Press Release: HP Issues Statement Addressing Market Speculation

mood · Nov 10, 2019

Five reasons HP might oppose a Xerox takeover
November 11, 2019
https://www.crn.com.au/news/five-reasons-hp-might-oppose-a-xerox-takeover-533745

Xerox's takeover offer for HP Inc. is reportedly 23 percent higher than where HP shares started the month, and would bring together the leaders in A4 and A3 devices at a time when the print industry is ripe for consolidation.

HP, however, is much more than a print company, as the No. 2 maker of PCs worldwide and an up and comer in the realm of 3D printing. There are plenty of reasons why HP's leadership, including brand-new CEO Enrique Lores, might not welcome the idea of being absorbed by its smaller print competitor Xerox.
What follows are five reasons why HP might oppose the acquisition offer by Xerox. [...]
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mood · Nov 12, 2019

HP, Xerox have "major disagreements" on merger
November 12, 2019
https://www.crn.com.au/news/hp-xerox-have-major-disagreements-on-merger-533813

There are serious areas of disagreement between the leadership teams at HP Inc. and Xerox over the details of how the two companies would be combined, according to a report.

Sources told Bloomberg that both companies see a rationale for a merger, which would bring together the leaders in A4 and A3 devices at a time when the print industry is waning.
However, there are some major disagreements over the specifics—such as which company would be the acquirer in the deal and which of the two management teams would run the combined company, according to the report. Bloomberg characterised the issues as "potentially intractable disagreements."
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mood · Nov 17, 2019

HP Inc rejects Xerox deal, but happy to keep talking
November 18, 2019
https://www.crn.com.au/news/hp-inc-rejects-xerox-deal-but-happy-to-keep-talking-534109

HP Inc has rejected Xerox's proposed merger, but is open to a deal with a different structure..

News of the rejection came early this morning Sydney time when the HP Inc board issued a letter sent to Xerox Vice Chairman and CEO:John Visentin. The letter explained HP Inc feels the proposed deal is not the best thing for HP Inc and its shareholders.

"Our Board of Directors has ... unanimously concluded that it significantly undervalues HP and is not in the best interests of HP shareholders. [...]"
But the rejection was not definitive, as Bergh and Lores go on to say "We recognize the potential benefits of consolidation, and we are open to exploring whether there is value to be created for HP shareholders through a potential combination with Xerox."

And then the kicker: "We remain ready to engage with you to better understand your business and any value to be created from a combination."
All of which puts the ball in Xerox's court, as HP Inc has signaled it thinks consolidation of the printer market is a good idea and has enough balance sheet strength to make that happen without a Xerox deal.
By inviting Xerox to reveal more about its financial state, the letter leaves open the possibility that HP Inc could even acquire Xerox!
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ronjor · Nov 21, 2019

Xerox threatens to launch hostile bid for HP Inc

November 21, 2019
(Reuters) - Xerox Corp (XRX.N) on Thursday threatened to go hostile with its $33.5 billion buyout bid for HP Inc (HPQ.N), if the personal computer maker did not agree to a “friendly” discussion before Nov. 25.
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mood · Nov 26, 2019

Xerox will continue its attempt to take over HP by bidding directly to shareholders
November 26, 2019
https://www.neowin.net/news/xerox-w...e-over-hp-by-bidding-directly-to-shareholders

Over the past few days, printing company Xerox and HP have been in a back-and-forth. Xerox first approached HP with the intent to buy the company for $22 per share, for a total value of over $30 billion. HP's board of directors swiftly refused the proposal, citing, among other things, Xerox's declining revenue in the past year.

To Xerox's repeated dismay, HP's board of directors again refused to sell the company, and now, the former company has issued yet another letter to HP.
The letter goes on to present a series of reasons why Xerox believes HP's refusal to accept the offer doesn't make sense, such as the fact that HP's public disclosure says that past performance doesn't necessarily indicate future performance of a business.

It looks like HP might have a tough battle ahead, but it remains to be seen if Xerox's takeover plans will go through. HP has yet to respond to this new letter.
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Xerox Considers Takeover Offer for HP

hawki Registered Member

mood Updates Team

mood Updates Team

mood Updates Team

mood Updates Team

ronjor Global Moderator

mood Updates Team

Dell Considering Selling RSA: Report

Seagate will offer 18TB and 20TB HDDs next year

Netflix considers switching from Intel to AMD EPYC in its datacenters

Fitbit considers whether it should explore a sale

Noteworthy: HP Desktop,Monitor Bundle - $370 = %50 off

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