Xerox’s attempts to take over HP, which in the meantime turned into a hostile takeover, have been halted until further notice. The company’s attention could be better focused on the problems surrounding COVID-19.
According to Xerox, the escalating COVID-19 pandemic makes other issues more important. The health and safety of employees, customers, partners and affiliates is a priority for the company, said John Visentin, Xerox Vice President and Chief Executive Officer. At the moment this is more important than “all other considerations, including the proposal to acquire HP“.
The company says it is closely monitoring reports from government and health authorities around the world. Xerox also reports that it is working with industry colleagues to minimise the spread and impacts of the virus. For example, the publication of presentations, media interviews and discussions with HP shareholders are postponed.
Xerox has thought about taking over HP for some time, and has has been trying to do so in recent months. After making several bids for a takeover, all of which were denied by HP due to alleged undervaluation, Xerox recently decided to launch a hostile takeover. That process is now at a temporary standstill. Incidentally, the pause is also timely due to the effects of the virus on the economy, as Xerox’s position is obviously not improving due to falling stock market prices.