HP rejects new offer from Xerox that ‘undervalues’ company
Unsolicited takeover offer was for $22 per share
HP has repeatedly snubbed Xerox’s offer, saying its announced restructuring plan will provide greater value to shareholders. Photograph: iStock
HP has again rejected an unsolicited takeover offer from Xerox, saying the potential deal “significantly undervalues” the personal-computer maker.
Xerox said Monday it had secured $24 billion of financing for a potential acquisition of HP.
The debt commitment “is not a basis for discussion,” HP said Wednesday in a letter to Xerox chief executive John Visentin. “The HP board of directors remains committed to advancing the best interests of all HP shareholders and to pursuing the most value-creating opportunities.
“Your letter . . . regarding financing does not address the key issue – that Xerox’s proposal significantly undervalues HP,” the letter stated.
HP has repeatedly snubbed the offer, saying its announced restructuring plan will provide greater value to shareholders.
Xerox has left open the possibility of sparking a proxy fight or introducing a tender offer to close the deal.
Billionaire investor Carl Icahn, who has a 4.2 per cent stake in HP and a 10.9 per cent stake in Xerox, and has been pushing for a merger, was not immediately available for comment. – Bloomberg/Reuters