Xerox’ latest bid for HP values the company at $35 billion and will be followed , says Xerox, by a tender offer for HP shares on March 2nd – going direct to the shareholders offering to buy their shares.
Xerox will also ask HP’s shareholders to vote for replacements for HP’s board of directors.
The tender move follows two rejections of previous offers from Xerox by the HP board valuing HP at $33 billion and $33.5 billion,
In response, Xerox says it has raised $24 billion in financing from Mizuho, Citigroup and Bank of America to pay for the HP acquisition.
HP, however, remains unimpressed: “We reiterate that the HP Board of Directors’ focus is on driving sustainable long-term value for HP shareholders,” says HP’s CEO in a letter to Xerox, “your letter dated January 6, 2020 regarding financing does not address the key issue – that Xerox’s proposal significantly undervalues HP – and is not a basis for discussion.”
Pushing for the deal to happen is Carl Icahn (pictured) who has an 11% stake in Xerox and a stake in HP near to 5%.
Source: electronicsweekly
