Global PC shipments dropped the most since 2013 in the first quarter, after the Covid-19 pandemic ensnared the Chinese supply chain and created production problems for major hardware companies.
It’s finally over. Xerox announced late Tuesday that it is abandoning its tender offer to acquire HP, citing the global health crisis from Covid-19 and the ensuing difficult market environment.
HP has announced it will return $16-billion to shareholders, primarily through buybacks, and boost cost cuts, trying to rally investors against Xerox for control of the world’s second largest PC maker.
In the lumbering takeover battle for HP, Xerox had been wielding plenty of stick, so it was about time for some carrot. What came was more of a crudite, but it might just be the appetiser that HP needs.
After HP rebuffed Xerox’s attempted $34-billion takeover attempt, don’t be surprised if the printer company’s next step is to say, “You don’t buy us, we buy you.” But don’t expect any offer to be generous.