Xerox considers $27 billion takeover of HP: Report

1 min read . Updated: 06 Nov 2019, 10:13 AM IST Shubham Kali, Reuters

There is no guarantee that Xerox will follow through with an offer or that one would succeed: Report

Xerox had scrapped its $6.1 billion deal to merge with Fujifilm last year
HP has been struggling with its printer business segment recently

Xerox Holdings Corp is considering making a cash-and-stock offer for personal computer maker HP Inc at a premium to its market value of about $27 billion, the Wall Street Journal reported on Tuesday. The U.S. printer maker's board discussed the possibility on Tuesday, the newspaper said, citing people familiar with the matter.

There is no guarantee that Xerox will follow through with an offer or that one would succeed, it added.

Xerox has also received an informal funding commitment from a major bank, known as a "highly confident letter", WSJ said.

Both U.S.-based companies did not immediately respond to Reuters' requests for comment.

On Monday, Xerox had said it will sell its 25% stake in Fuji Xerox, its joint venture with Fujifilm Holdings, for $2.3 billion, after investor activism scuppered a deal involving the two companies.

Xerox had scrapped its $6.1 billion deal to merge with Fujifilm last year after lobbying by two of its main investors, Carl Icahn and Darwin Deason.

HP has been struggling with its printer business segment recently. The company's segment revenue was down 5% on-year when it reported its third-quarter results in August.