Xerox refuses to quit, adds three billion to new HP acquisition bid

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The soap opera that is the acquisition of HP by Xerox now has a new chapter: Xerox has increased its bid by 3 billion to some 36.5 billion dollars (about €33.4 billion euros).

The Register is able to report this today. The new bid amounts to about 24 dollars per share, instead of the 22 dollars that was bid before. Meanwhile, Xerox is appealing directly to HP‘s shareholders to convince them of the bid. Xerox states that it has spoken in person several times with some of HP’s largest shareholders.

“These stockholders consistently state that they want the enhanced returns, improved growth prospects and best-in-class human capital that will result from a combination of Xerox and HP. The tender offer announced today will enable these stockholders accept Xerox’s compelling offer despite HP’s consistent refusal to pursue the opportunity,” Xerox stated.

Direct profit for shareholders

According to Xerox, the new offer gives shareholders immediate financial gain and a stake in a larger, combined company. In addition, there is a lot of synergy to be achieved in a merger, according to Xerox, worth approximately $2 billion (€1.8 billion). These savings would include personnel savings and supplier consolidation.

Meanwhile, the game between Xerox and HP has been underway since the autumn of 2019, when Xerox made its first bid. In the meantime, HP had already refused a few times, one of the reasons being that the company felt undervalued by Xerox. On the other hand, Xerox had already made some plans that would become reality in the event of a takeover.

For the time being, HP has not responded to the new bid. Of course, Techzine will report on new developments.