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.
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.”