Xerox Hosting Dinner to Coerce HP Shareholders

Xerox Holdings Corp (XRX) will be hosting a dinner at a restaurant located at the Riverside neighborhood of Greenwich, Connecticut on Feb. 18, in which it has invited top HP Inc.’s (HPQ) executives among other shareholders. Sources concerned with the matters have revealed.

According to the sources, the printer manufacturer will be seeking to persuade the shareholders to support the $35 billion acquisition bid which is said to be facing some hurdles.

The takeover bid got its first set back after Xerox increased its first cash and stock bid for HP last week from $22 to $24 per share.

Additionally, Xerox will use the dinner to ask HP shareholders to replace HP’s directors with some Xerox has nominated. This is expected to take place during HP’s shareholders meeting slated for later this year.

Rumors have it that HP was expecting to dismiss the takeover bid when reporting its quarterly reports on February 24. Last week, HP informed its shareholders that it wants them to have full information about Xerox before it gives a public response to the takeover bid.

Xerox is looking forward to accumulate $2 billion in synergies costs from the deal as the two companies will complement each other and acquire a stronger position in the printing market.

Consumers in the printing industry have been switching to digital documents which are cost saving and environmental friendly. This shift has resulted to a declining performance in the printing industry.

Many firms in the printing industry are now left with no more options rather than takeovers which will consolidate their declining sales and revenue while pushing up their market share.