Xerox to Nominate as Many as 11 Directors to HP Board
January 21 2020 - 10:27PM
Dow Jones News
By Cara Lombardo
Xerox Holdings Corp. is preparing to nominate as many as 11
directors to HP Inc.'s board, according to people familiar with
matter, in an aggressive move to push a $33 billion unsolicited
takeover bid for the maker of computers and printers.
Xerox in recent weeks bought a small HP stake, which gives it
the right to nominate directors for elections to be held at the
company's annual meeting this summer, the people said. The deadline
for nominations to HP's 11-person board is Friday. Xerox could
still decide to not follow through with the nominations.
Xerox in November offered to buy its much larger rival for $22 a
share in cash and stock. HP rejected the bid as too low and
questioned Xerox's ability to finance it. Xerox earlier this month
said it had secured up to $24 billion in debt financing; in
response, HP reiterated that the bid was too low.
Xerox hopes the move will put pressure on HP to negotiate a
deal, which it so far has refused to do. Xerox may ultimately take
its bid directly to HP shareholders in the form of a tender offer,
some of the people said. Should there be a vote on the nominees, it
could serve as a referendum on the proposed deal and install a
slate of directors more favorable to a takeover.
Corrie Driebusch contributed to this article.
Write to Cara Lombardo at cara.lombardo@wsj.com
(END) Dow Jones Newswires
January 21, 2020 22:12 ET (03:12 GMT)
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