Tag: hostile takeover

Xerox in hostile takeover bid for HP

By Nico Grant for Bloomberg

HP has said that rival Xerox has started an unsolicited offer for all outstanding shares of HP, escalating a battle for control of the personal computer giant.

Xerox has pitched HP investors on a cash-and-stock offer worth $24 a share. For each HP share, a holder would receive $18.40 in cash and 0.149 Xerox shares. The photocopying pioneer has said combining the companies would yield $2 billion in cost savings and more than $1 billion in additional revenue growth. Both hardware companies have invented technologies still in use by consumers and office workers, and have struggled in a world increasingly driven by software.

HP’s board has rejected Xerox’s offer as undervaluing the Palo Alto, California-based company, and said last week it will return $16 billion to shareholders in an effort to show it can stand on its own. HP executives, however, said they will engage Xerox to discuss a potential combination on their terms.

On Monday, HP said in a statement that it will review Xerox’s offer over 10 business days before advising the best course of action for shareholders.

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