HPQ HP Inc

By Micah Maidenberg 

Xerox Holdings Corp. has launched an effort to acquire all of HP Inc.'s shares outstanding, even as HP tries to block a takeover in what it considers a flawed deal.

Xerox is offering stockholders cash, Xerox shares or a combination of the two, HP said Monday.

Last month, Xerox raised its offer to HP shareholders to $18.40 a share in cash and a 0.149 Xerox share for each HP share, and said it would launch a public takeover effort in March.

Palo Alto, Calif.-based HP said Monday its board is evaluating the offer but advised stock owners not to make any decisions regarding their holdings right now. HP has said Xerox's offer undervalues its business but that it is open to a different potential deal to combine the two companies.

Last week, HP said it would buy back $15 billion worth of its stock as it worked to block Xerox from taking it over.

Shares of HP rose 2.7% while those for Xerox were up 2.5% in midday trading.

Xerox moved to bid for HP late last year, saying that a merger between the two companies would result in cost savings, free up resources for new investments and generate strong returns for shareholders. Both companies have faced pressure as customers print out fewer documents.

Xerox makes larger printers and copy machines, and generates revenue from renting them to businesses and maintaining the devices. HP sells smaller printers, printer supplies and personal computers.

Write to Micah Maidenberg at micah.maidenberg@wsj.com

(END) Dow Jones Newswires

March 02, 2020 13:47 ET (18:47 GMT)

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