Xerox Secures $24 Billion Financing for Proposed HP Takeover

HP rejected Xerox's offer in November saying it "significantly" undervalued the company.

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By Reuters | Updated: 7 January 2020 18:26 IST
Highlights
  • HP rejected the $22 per share offer in November
  • Xerox has engaged in dialogue with many of HP's shareholders
  • HP had said it was open to exploring a bid for Xerox

Shares of HP were up nearly 2 percent in trading before the bell

Xerox Holdings said on Monday it has secured $24 billion in financing for its $33.5 billion takeover offer for HP, a deal that the personal computer maker is opposing.

HP rejected the $22 per share offer in November saying it "significantly" undervalued the company, following which the printer maker took the offer directly to HP's shareholders.

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Xerox has engaged in "constructive dialogue" with many of HP's largest shareholders, the company's chief executive officer, John Visentin, said in a letter addressed to HP's board on Monday.

"My offer stands to meet with you in person, with or without your advisors, to begin negotiating this transaction," Visentin said.

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Activist investor Carl Icahn, who has a 4.2 percent stake in HP and a 10.9 percent stake in Xerox, in December urged HP shareholders who agreed with a merger with Xerox to reach out to the PC maker's directors for immediate action.

HP had said it was open to exploring a bid for Xerox, stating that it recognises the potential benefits of consolidation.

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Shares of HP were up nearly 2 percent in trading before the bell. The company did not immediately respond to a Reuters request for comment.

© Thomson Reuters 2019

 

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Further reading: Xerox, HP
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