HP: Takeover Offer From Xerox Continues to Significantly Undervalue HP
January 08 2020 - 7:49PM
Dow Jones News
By Maria Armental
Xerox Holdings Corp.'s takeover offer for HP Inc. remains short
in one critical respect: It "significantly undervalues HP -- and is
not a basis for discussion," HP officials said Wednesday.
On Nov. 5, Xerox offered $17 in cash and a 0.137 Xerox share for
each HP share. HP's stock closed that day at $18.40. It closed
Wednesday at $20.93.
HP had rejected Xerox's cash-and-stock bid as too low and cast
doubt as to whether Xerox would be able to raise the cash portion
and whether the combined company could handle the amount of debt it
would be left with.
On Monday, Xerox said Monday Citigroup Inc., Mizuho Financial
Group Inc. and Bank of America Corp. had agreed to lend Xerox up to
$24 billion.
Billionaire investor Carl Icahn has stakes in both companies and
supports a combination.
Write to Maria Armental at maria.armental@wsj.com
(END) Dow Jones Newswires
January 08, 2020 19:34 ET (00:34 GMT)
Copyright (c) 2020 Dow Jones & Company, Inc.
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