In an effort to avert an acquisition by Xerox, HP will be rolling out a plan over the next three years to relaunch the company ‘to the top of their game’. In the period from 2020 to 2022, HP plans to distribute approximately sixteen billion dollars to its shareholders.
Earlier, HP issued a shareholder rights statement after Xerox made a new offer. The CEO of HP (Enrique Lores) once again believed that that offer was substandard. It would “significantly undervalue HP and pose a significant risk to the company’s future,” said the CEO.
In addition to rolling out the new business plan, HP wants to go into conversation with Xerox at the same time, to find a solution that will benefit both parties: a middle ground that will please HP’s shareholders and guarantee the company’s future.
Mixed financial results
In Q1 of 2020, HP has had mixed financial results. In the personal systems market the company experienced a growth of a few percent, but in the printer market this was significantly less: there, sales dropped by a small percentage. However, the company still made a profit in that market. In the coming years, HP wants to achieve significant growth within that division by responding more to the market for 3D printers.
On February 10, 2020, Xerox offered $24 per HP share, but according to HP, that would be far less than what shareholders would have been satisfied with.