Xerox Gives HP Ultimatum on Acquisition, Sets Monday Deadline

Xerox Gives HP Ultimatum on Acquisition, Sets Monday Deadline

Highlights
  • The offer represents a 29 percent premium to HP’s average trading price
  • Xerox says ‘it was very surprised’ by the rejection
  • Xerox said that it has set a deadline for Monday

Xerox said Thursday it was holding firm on its $33 billion takeover offer for computer and printer maker HP, and warned it would take the matter to shareholders directly without a deal by Monday. The announcement from the copy machine pioneer came days after HP rejected the bid, claiming it “significantly undervalues” the Silicon Valley firm. Xerox, in a letter to the HP board, said it was “very surprised” by the rejection of the cash-and-stock offer which sets a value of $22 per share for the computing firm.

“Frankly, we are confused by this reasoning in that your own financial advisor, Goldman Sachs & Co., set a $14 price target with a ‘sell’ rating for HP’s stock after you announced your restructuring plan on October 3, 2019,” the Xerox letter said,

The offer represents a 29 percent premium to HP’s recent average trading price, Xerox chairman anc chief executive John Visentin said in the letter.

“Moreover, our offer is neither ‘highly conditional” nor “uncertain as you state,” Visentin wrote