Friday, 14 Feb 2020 10:16 GMT

Bid for HP raised as Xerox persists

Xerox has increased its offer price for HP to $24 (£18) per share after the firm has previously refused to participate in any talks due to the offer being unsubstantial.

The battle for HP began in November 2019. Since then Xerox has offered a $27bn (£21bn) cash-and-stock offer; engaged directly with HP shareholders in a bid to gain their support; acquired $24bn (£18bn) in binding financing commitments; and recently revealed plans to overturn HP’s entire board of directors.

After all of these efforts were unsuccessful, Xerox has now increased its bid to $36bn (£27bn) which consists of $18.40 (£14.12) in cash and 0.149 Xerox shares for each HP share.

In a statement released by Xerox, the firm says: “Xerox has met, in some cases multiple times, with many of HP’s largest stockholders. These stockholders consistently state that they want the enhanced returns, improved growth prospects and best-in-class human capital that will result from a combination of Xerox and HP.

The tender offer announced today will enable these stockholders to accept Xerox’s compelling offer despite HP’s consistent refusal to pursue the opportunity

“The tender offer announced today will enable these stockholders to accept Xerox’s compelling offer despite HP’s consistent refusal to pursue the opportunity.”

Before responding to this announcement from Xerox, HP has announced that it will review financial results for the first fiscal quarter, which ended January 31st, 2020, live via an audio webcast.

The purpose of this is to give its shareholders full disclosure of the company’s earnings and the value of the company. The live webcast will take place on Monday February 24th at 5pm.

In a statement, HP says: “At that time, when out of its quiet period, HP will share additional information about its plan to drive sustainable long-term value for its shareholders, including the execution of the company’s multi-year strategic and financial plan and the deployment of its strong balance sheet.”



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