HP rebuffs Xerox takeover again despite US$24b financing

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HP rebuffs Xerox takeover again despite US$24b financing

HP has once again refused a takeover attempt by Xerox, even after securing US$24 billion in financing.

In an open letter addressed to Xerox CEO John Visentin, HP’s board maintained that the proposal, which totals US$33.5 billion, “significantly undervalues” HP, and that the financing Xerox secured does not address the issue.

“We reiterate that the HP board of directors’ focus is on driving sustainable long-term value for HP shareholders,” the letter read, which was co-signed by HP CEO Enrique Lores and HP board chair Chip Bergh.

“The HP board of directors remains committed to advancing the best interests of all HP shareholders and to pursuing the most value-creating opportunities.”

Xerox earlier this week secured US$24 billion in financing from Citi, Mizuho and Bank of America, after HP refused the previous offer of $22 per share in November 2019.

In his own open letter published on 6 January, Visentin told HP’s board that Xerox had engaged in “constructive dialogue” with major HP shareholders.

“It remains clear to all of us that bringing our companies together would deliver substantial synergies and meaningfully enhanced cash flow that could, in turn, enable increased investments in innovation and greater returns to shareholders,” the letter read.

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