HP dismisses Xerox's takeover bid, again
The company still considers the bid to be undervalued
Stocks impacted: HP Inc. (HPQ), Xerox (XRX)
In its response to Xerox, HP called its takeover proposal "significantly" undervalued and is not a basis for discussion. In particular, HP said it still had concerns, including the fact that Xerox’s $33.5 billion offer was too low and Xerox’s declining revenue. Earlier in the week, Xerox announced that it had the backing of Citi, Mizuho and Bank of America for a takeover of HP. As a reminder, Xerox made an unsolicited takeover bid for its larger rival in November but was rejected by HP’s board. Also, last year, HP said it would cut up to 16% of its workforce by the end of 2022 while Xerox is undergoing a $640 million cost-savings program. HP stocks gained 1.31% on Wednesday while Xerox shares declined marginally, by 0.05%.
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