According to numerous news outlets, Xerox has begun a tender offer for all outstanding shares of HP, escalating a battle for control of the personal computer company that Xerox executives began several months ago. Xerox proposed to HP investors a cash-and-stock offer worth $24 a share. For each HP share, a shareholder would receive $18.40 in cash and 0.149 Xerox shares. The offer is set to expire April 21, 2020 according to Xerox. The OEM has insisted that combining the companies would yield $2 billion (USD) in cost savings and more than $1 billion in additional revenue growth.
HP’s board has emphatically rejected Xerox’s offer as undervaluing its company, and recently said that it will return $16 billion to shareholders in an effort to show that HP continues to be a strong and viable company. That being the current situation, HP executives recently revealed that they’re willing to discuss a potential merger – but only on their terms. Earlier this week, HP said that it’s reviewing Xerox’s offer over the next 10 business days before advising its shareholders on the best course of action.
We’ll keep you up to date on this ongoing power struggle.
Xerox-HP battle enters next stage
