Xerox Says Moving Ahead With HP Bid Despite Poison Pill

Date : 02/21/2020 @ 4:12PM
Source : Dow Jones News
Stock : HP Inc (HPQ)
Quote : 14.48  0.0 (0.00%) @ 1:00AM
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Xerox Says Moving Ahead With HP Bid Despite Poison Pill

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By Colin Kellaher

 

Xerox Holdings Corp. on Friday said it will press on with its hostile $34 billion takeover bid for HP Inc. despite its target's implementation of a poison pill rights plan.

HP on Thursday said its board adopted the rights plan, which has a 20% trigger, after Xerox said it would launch a $24-a-share tender offer early next month.

HP, which is in a quiet period ahead of its quarterly earnings report slated for after the bell on Monday, has previously said the report will include details about its plans to boost shareholder value.

Analysts have said the Palo Alto, Calif., printer and PC maker could be planning a large stock buyback, among other moves.

"HP's board is focused on creating long-term value for HP shareholders," the company said in announcing the rights plan. "We believe it is essential that HP shareholders have sufficient time and full information when considering any tender offer that Xerox may commence."

Xerox launched its pursuit of HP in November with a bid of $22 a share, which HP repeatedly rejected as too low. The Norwalk, Conn., company last month raised its bid to $24 a share and has proposed a slate of directors to take control of HP's board.

In a statement on Friday, Xerox said it will press on with the tender offer and the proxy fight.

"Regardless of what the company and its army of advisers announce Monday, we believe HP shareholders appreciate that the value we could create by combining Xerox and HP outweighs --and is incremental to--anything HP could achieve on its own," Xerox said.

Shares of HP were unchanged at $22.64 in early trading Friday, while Xerox shares slipped 0.9% to $36.45.

 

Write to Colin Kellaher at colin.kellaher@wsj.com

 

(END) Dow Jones Newswires

February 21, 2020 10:57 ET (15:57 GMT)

Copyright (c) 2020 Dow Jones & Company, Inc.

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