HP has again rejected an unsolicited takeover offer from Xerox, saying the potential deal “significantly undervalues” the PC maker.
Xerox said on Monday it had secured US$24-billion of financing for a potential acquisition of Palo Alto, California-based HP. The debt commitment “is not a basis for discussion”, HP said Wednesday in a letter to Xerox CEO John Visentin. “The HP board of directors remains committed to advancing the best interests of all HP shareholders and to pursuing the most value-creating opportunities.”
Xerox said Citigroup, Mizuho Financial Group and Bank of America provided the financing for the Norwalk, Connecticut-based printer maker to pursue its $22/share cash-and-stock acquisition bid.
HP has repeatedly snubbed the offer, saying its announced restructuring plan will provide greater value to shareholders. Xerox has left open the possibility of sparking a proxy fight or introducing a tender offer to close the deal. — Reported by Nico Grant, (c) 2020 Bloomberg LP