HP Rejects Bid Again From Xerox Holdings

This week HP Inc. again rejected a $22 a share unsolicited takeover bid from Xerox Holdings.

Xerox announced announced this week that it has lined up financing for the cash portion of its offer for the rival printer company, which consists of $17 a share and the remainder in Xerox shares.

HP announced on Wednesday that its board continues to find the Xerox bid inadequate and too low.

“We reiterate that the HP Board of Directors’ focus is on driving sustainable long-term value for HP shareholders,” HP CEO Enrique Lores and Chairman Chip Bergh wrote in a letter to Xerox CEO John Visentin.

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

The first offer from Xerox to HP was this past November. At the time Xerox offered to pay $22.00 per share for HP, consisting of 77% cash and 23% stock, or $17 in cash and 0.137 Xerox share for each HP share.

Disclaimer: We have no position in any of the companies mentioned and have not been compensated for this article.