Xerox Raises Bid to Acquire HP -- WSJ
February 11 2020 - 3:02AM
Dow Jones News
By Dave Sebastian
This article is being republished as part of our daily
reproduction of WSJ.com articles that also appeared in the U.S.
print edition of The Wall Street Journal (February 11, 2020).
Xerox Holdings Corp. raised its offer to buy HP Inc. to $24 a
share and said it would launch a public takeover bid early next
month.
In November, Xerox made an initial stock-and-cash offer of $22 a
share for the maker of computers and printers. It said Monday that
the latest offer isn't tied to financing or due-diligence
conditions.
HP had rejected the initial bid as too low and questioned
Xerox's ability to finance a deal. In January, Xerox said it had
secured up to $24 billion debt financing but HP again said the bid
undervalued the company.
HP shares rose less than 1% to $21.90 on Monday.
The company had a market value of about $27 billion in early
November, before word of Xerox's interest in a deal first surfaced.
The latest offer values HP at about $34.88 billion.
Xerox said it met with some of HP's largest stockholders before
increasing its bid, which consists of $18.40 in cash and 0.149
Xerox share for each HP share. It said it expects to begin its
campaign to buy shares directly from investors around March 2.
"The tender offer announced today will enable these stockholders
to accept Xerox's compelling offer despite HP's consistent refusal
to pursue the opportunity," Xerox said.
HP didn't respond to a request for comment.
The two companies dominate different areas of the printer market
and have both been cutting costs as the need for printed documents
declines.
Xerox, which is based in Norwalk, Conn., primarily makes large
printers and copy machines, while HP mainly sells smaller printers
and printing supplies.
HP is also one of the biggest PC makers in the world, though its
printer business is more lucrative.
Xerox has said it plans to nominate 11 independent candidates to
replace HP's board at the Palo Alto, Calif.-based company's annual
shareholder meeting this summer.
Write to Dave Sebastian at dave.sebastian@wsj.com
(END) Dow Jones Newswires
February 11, 2020 02:47 ET (07:47 GMT)
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