Xerox Holdings Corp. is considering making a cash-and-stock offer for HP Inc. (), a company with market value over three times its own, according … HP assumes no obligation and does not intend to update these forward-looking statements.© 2020 Xerox Corporation. Xerox ends pursuit to acquire HP. Like us on Facebook to see similar storiesHP said that it would review Xerox’s nominees and respond in due course. Indeed, HP representatives seemed to float that very possibility in the statement they sent to TechCrunch confirming that the company had received Xerox's offer.
The printers will be based primarily on the laser printing technology HP acquired from Samsung in … But since, in this case, it might seem more reasonable for the larger company to buy the smaller one, that careful wording may really mean that a different sort of transaction is being contemplated.How will all this play out? "We have had conversations with Xerox Holdings Corporation from time to time about a potential business combination. We have considered, among other things, what would be required to merit a transaction. This has been a … The move could potentially be a precursor to Xerox taking its offer directly to shareholders through a tender offer at the current offer price or a premium if HP continues to rebuff its efforts, according to people familiar with the matter. Its last annual meeting was on April 23.“These nominations are a self-serving tactic by Xerox to advance its proposal, which significantly undervalues HP and creates meaningful risk to the detriment of HP shareholders,” HP said in a statement. \"We have had conversations with Xerox Holdings Corporation from time to time about a potential business combination. We have considered, among other things, what would be required to merit a transaction.\"On the other hand, HP's new CEO, Enrique Lores, says his long-term plan is to lead HP into the lucrative and relatively new field of 3-D printing. Xerox has a value of about $8 billion at the moment, while HP is worth about $27.3 billion. The software company is worth $29 billion and is over three times the size of Xerox, which makes printers and copiers, in terms of market cap."In reaching this determination, the Board also considered the highly conditional and uncertain nature of the proposal, including the potential impact of outsized debt levels on the combined company's stock," the board wrote in a letter to John Visentin, Xerox's CEO."We note the decline of Xerox's revenue from $10.2 billion to $9.2 billion (on a trailing 12-month basis) since June 2018, which raises significant questions for us regarding the trajectory of your business and future prospects," the board wrote.Get this delivered to your inbox, and more info about our products and services.Got a confidential news tip? HP and its advisers had questioned Xerox’s ability to raise the money for the deal.The push to replace the board marks an escalation of the simmering tensions between the two hardware giants that have withered in a world increasingly driven by software. Xerox will source from HP certain A4 and entry-level A3 products with the majority running on Xerox’s award-winning ConnectKey ® controller software, and Xerox will supply toner to HP for these and other products. HP is a larger company and is more highly valued than Xerox. On March 31, Xerox issued a press release stating “The current global health crisis and resulting macroeconomic and market turmoil caused by COVID-19 have created an environment that is not conducive to Xerox continuing to pursue an acquisition of HP Inc. Willkie Farr & Gallagher LLP is providing legal counsel to Xerox’s independent directors.Xerox filed its slate ahead of a Friday deadline for board nominations.