|
|
Xerox ends hostile takeover bid for HP.
The Wall Street Journal reports:
"Xerox Holdings Corp. is pulling the plug on its hostile bid to buy
larger rival HP Inc. after the coronavirus pandemic undermined the
copier maker’s ability to pull off the debt-laden merger.
"Xerox said Tuesday it is ending both its more than $30 billion tender
offer and a proxy fight to replace the printer and PC maker's board.
Xerox concluded it is no longer prudent to pursue the deal given the
public health crisis and resulting market swoon. The move puts the
kibosh on one of the biggest mergers in the works and underscores the
blow that the coronavirus has dealt to the world of deal making.
"It marks the end of a five-month-long offensive by Xerox, kicked off
when its offer became public in early November after the two companies
had earlier explored a combination quietly but failed to come to an
agreement. HP has repeatedly rebuffed its rival since then, rejecting
Xerox's latest cash-and-stock offer of $24 a share and an earlier one as
insufficient and too risky given the amount of debt involved. Xerox's
move to buy a company more than three times its size was always going to
be a challenge, but at the outset the company was in a stronger position
than it is today. It had cash coming in from the sale of its joint
venture with Fujifilm and its stock had been rising as it continued to
cut costs."
https://www.wsj.com/articles/xerox-to-end-hostile-takeover-bid-for-hp-11585684800
[paywalled]
"HP Inc. (NYSE: HPQ) today issued the following statement following
Xerox Holding Corporation’s withdrawal of its unsolicited exchange offer
and director nominations:
"We remain firmly committed to driving value for HP shareholders. HP is
a strong company with market leading positions across Personal Systems,
Print, and 3D Printing & Digital Manufacturing. We have a healthy cash
position and balance sheet that enable us to navigate unanticipated
challenges such as the global pandemic now before us, while preserving
strategic optionality for the future.
"Our focus remains on addressing the needs of our ecosystem of
stakeholders around the world, ensuring that we build on our strength
and resiliency throughout this crisis and position the business for the
opportunities ahead.
"HP would like to thank our shareholders, partners, customers and
employees for their input and continued support through this process."
https://investor.hp.com/news/press-release-details/2020/HP-Issues-Statement/default.aspx
Know someone who has recently left, is now leaving -- or is expecting to
leave? ...send them this link to our "ASAP Checklist" -- advice from
alumni on urgent things to do before losing access to internal systems
and in the following weeks. Continuously updated based on member
comments.
https://www.hpalumni.org/asap (No password required to access our
public website.)
----
You received this because you are a member of the Hewlett-Packard Alumni
Association.
Operated by former employees who volunteer their time. Not officially
endorsed or supported.
To Join HPAA at no charge, change address, reinstate, or unsubscribe, please
go to:
https://www.hpalumni.org/subs
HPAA does not control -- or receive revenue from -- advertising added by
Yahoo..
Sent March 31, 2020
Helping each other with life after HP and HPE: Website Index Forums
Independent, member-supported volunteer association. Not officially endorsed or supported. © 2024 Hewlett-Packard Alumni Association, Inc. By using this site you accept these terms.