Xerox Makes Offer to Buy HP

According to a CNBC report citing sources familiar with the situation, Xerox has made a cash and stock offer to acquire printer maker HP.

The Wall Street Journal also reported on Tuesday that the company’s board discussed the possibility and that Xerox has an informal funding commitment from a major bank.

According to sources and reported by CNBC’s David Faber, combining the companies could save more than $2 billion in expenses.

“We have considered, among other things, what would be required to merit a transaction. Most recently, we received a proposal transmitted yesterday,” said HP. “We have a record of taking action if there is a better path forward and will continue to act with deliberation, discipline and an eye towards what is in the best interest of all our shareholders.”

A Xerox spokeswoman said the company does not comment on “rumors and speculation.”

It was in October that HP said it would be cutting between 7,000 and 9,000 jobs by the end of fiscal 20220. The move is a part of a broader restructuring plan that it estimates will save $1 billion a year.

Xerox also announced that it will sell its 25% stake in Fuji Xerox, the joint venture between the company and Japan’s Fujifilm, for $2.3 billion.

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