Xerox threatens to launch hostile bid for HP
Xerox says it may go hostile with its $33.5 bn bid for HP if the firm did not agree to ‘friendly’ talks before 25 NovHP has rejected Xerox’s offer of $22 per share, saying it undervalued the company
BENGALURU : Xerox Corp. on Thursday threatened to go hostile with its $33.5 billion buyout bid for HP Inc., if the personal computer maker did not agree to a “friendly" discussion before 25 November.
HP on Sunday rejected Xerox’s offer of $22 per share, saying it undervalued the company and that it was open to exploring a bid for the US printer maker. “Xerox will take its compelling case to create superior value for our respective shareholders directly to your shareholders," the firm said in a letter to HP’s board.
HP did not immediately respond to a request for comment.
Xerox said there will be no financing condition to the completion of its acquisition of HP.
“We are confused by this reasoning in that your own financial adviser, Goldman Sachs & Co, set a $14 price target with a ‘sell’ rating for HP’s stock after you announced your restructuring plan," Xerox wrote in its letter. The median price target on HP stock by 15 analysts is $20.
Analysts have said there is merit in the firms combining to better cope with a stagnating printing market, but some cited challenges to integration, given their different offerings and pricing models.
Xerox made the offer for HP on 5 November, after it resolved a dispute with its joint venture partner Fujifilm Holdings Corp. reuters
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