‘Self Serving Tactic’ Xerox Nominates 11 To HP Board
HP has today confirmed that Xerox intends to nominate 11 candidates to the board of directors, with the company describing the move as another ‘self-serving’ act in its hostile takeover attempt.
Xerox has been pursuing a hostile takeover of the company, which HP believes ‘significantly undervalues’ their business and ‘creates meaningful risk to the detriment of HP shareholders’.
HP is accusing Xerox of using HP’s financial capacities for the benefit of Xerox shareholders.
Attributing the hostile takeover to ‘Carl Icahn, and his large ownership position in Xerox’ suggesting that his ‘interests are not aligned with those of other HP shareholders’.
Xerox CEO, John Visentin, on the other hand, believes ‘HP shareholders will be better served by a new slate of independent directors who understand the challenges of operating a global enterprise and appreciate the value that can be created by realizing the synergies of a combination with Xerox’.
HP has stated its unwavering commitment to HP shareholders and ‘will continue to take all appropriate actions to advance and protect HP shareholders’ best interests’.
Xerox said it had lined up US$24 billion of financing for the takeover, despite HP’s market value of US$27 billion.