Xerox Says Moving Ahead With HP Bid Despite Poison Pill
February 21 2020 - 11:12AM
Dow Jones News
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)
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