2 min Devices

Xerox officially starts hostile takeover of HP

Xerox officially starts hostile takeover of HP

The company offers 24 dollars per share from HP, which is about 21.60 euros per share. After a series of slightly more friendly attempts, Xerox has now definitively decided to make a hostile bid. According to the company, a takeover would definitely offer more progress for HP.

Xerox first announced its interest in HP in November. It later made an offer to buy the company for $22 per share. However, HP’s board of directors regarded this as a significant undervaluation. HP unanimously rejected the bid because it would not be in the interest of its shareholders.

Culmination

The story continued until now with a number of proposals from Xerox that were invariably shot down by HP. Also, Xerox had already threatened to go directly to influential shareholders of HP with a hostile bid. HP responded by putting together a long-term plan with shareholders’ rights to postpone a takeover for as long as possible. As a result, Xerox has now decided to be decisive, and indeed went directly to HP’s shareholders with a takeover bid.

“Our proposal offers progress over entrenchment,” Xerox Chief Executive Officer John Visentin said. “HP shareholders will receive $27 billion in immediate, upfront cash while retaining significant, long-term upside through equity ownership in a combined company with greater free cash flow to invest in growth and return to shareholders.”