Icahn Blasts HP Board for Not Engaging With Xerox
December 04 2019 - 11:44AM
Dow Jones News
By Colin Kellaher
Activist investor Carl Icahn on Wednesday excoriated the board
of HP Inc. (HPQ) for not engaging in merger talks with rival Xerox
Corp. (XRX).
HP last month rejected a $33 billion takeover offer from Xerox
as too low, and Xerox said it would take the $22-a-share bid
directly to HP's shareholders after HP refused to engage in a
due-diligence process.
In an open letter to HP shareholders, Mr. Icahn said he wonders
if HP's refusal to engage "is simply a delay tactic aimed at
attempting to preserve the lucrative positions of the CEO and
members of the board."
The billionaire investor, who owns a 10.85% stake in Xerox and a
4.24% interest in HP, has previously called a union of the two
companies a "no brainer."
Mr. Icahn urged HP's holders to join him in pressing the board
to explore a deal, and he questioned the Palo Alto, Calif.,
company's plans to go it alone.
"I cannot believe that the recalcitrance of HP's board is driven
by any real confidence in its standalone restructuring plan, which
the market, shareholders and analysts met with extreme indifference
and which seems to amount to little more than rearranging the deck
chairs on the Titanic," Mr. Icahn said.
HP representatives couldn't immediately be reached for
comment.
Write to Colin Kellaher at colin.kellaher@wsj.com
(END) Dow Jones Newswires
December 04, 2019 11:29 ET (16:29 GMT)
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