Printer manufacturer Xerox recently stopped bids to acquire HP, but the company did make offers to individual shareholders to sell their stock to Xerox. A few days after HP’s call to discontinue those attempts, Xerox announced that it is stopping all attempts, for the time being.
HP turned down every offer made by Xerox in the last few months, and Xerox took a different approach: tender for individual shares at a price of 24 dollars (or 18.40 dollars and 0.149 Xerox shares). A takeover attempt involving more than thirty billion dollars. Xerox tells Reuters why it is putting the takeover on hold:
“While it’s disappointing that this step has to be taken, we give higher priority to the health and safety of our employees, customers, partners and shareholders. That’s above any other consideration.”
Postponement or cancellation?
Xerox could have attempted to persuade HP’s board of directors at the upcoming shareholder meeting (in May of this year), but it will not do so now. The next chance to do so is not until spring 2021.
Since the outbreak of the corona virus, both parties have had a hard time. Xerox shares have plummeted by more than 50% in the past five weeks, while HP shares have seen a 25% decline in value.