Xerox launches hostile $24 a share bid for HP
Xerox has officially made a tender offer to acquire all of HP’s outstanding shares. The deal values HP share at $24 each, or about $34 billion in total. The value comprise of $18.40 in cash and 0.149 Xerox shares for each HP share. HP shareholders are invited to tender their shares before 5pm New York City Time on 21 April 2020.
“Our proposal offers progress over entrenchment,” Xerox CEO John Visentin said in a statement. “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.”
HP Inc. has acknowledged the tender offer and will be taking 10 business days to review and evaluate. The HP board advised its shareholders to take no action until then.
The two companies have been embroiled in a merger tug-of-war since Xerox made an unsolicited offer to acquire HP at USD$22 a share in November 2019.
HP deemed its offer too low and has consistently been rebuffing Xerox’s advances. In February, Xerox raised its offer to $24 a share. In an effort to dissuade its shareholders, HP launched a proposal to buy back the outstanding shares.
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