Xerox snubbed again by HP

Following Xerox’s announcement of securing US$24 billion in financing commitments, HP has once again rejected Xerox’s takeover bid.

The rejection was done via a letter from HP chairman Chip Bergh and CEO Enrique Lores to Xerox CEO John Visentin, stating the financing does not “address the key issue that Xerox’s proposal significantly undervalues HP”.

HP emphasized that the $24 billion financing is not “basis for discussion”.

The letter as follows:

Dear John,

We reiterate that the HP Board of Directors’ focus is on driving sustainable long-term value for HP shareholders. Your letter dated January 6, 2020 regarding financing does not address the key issue – that Xerox’s proposal significantly undervalues HP – and is not a basis for discussion. The HP Board of Directors remains committed to advancing the best interests of all HP shareholders and to pursuing the most value-creating opportunities.