Xerox Heats Up Bid To Acquire HP With Bigger Buy Price
Xerox has heated up its efforts to buy HP to $24 a share and revealed it would launch a public takeover bid early March.
Last November, Xerox made an initial offer of $22 a share for the computer and printer maker. On Monday, Xerox revealed the latest offer isn’t tied to due-diligence conditions or financing.
‘The tender offer announced today will enable these stockholders to accept Xerox’s compelling offer despite HP’s consistent refusal to pursue the opportunity,’ Xerox told the Wall Street Journal.
HP initially rejected the first bid saying it was too low and questioned Xerox’s ability to finance a deal in the first place.
In January, Xerox said it had up to $24 billion debt financing, but HP again said the bid undervalued the company. HP shares rose less than 1 per cent to US $21.90 on Monday.
The company had a market value of about $27 billion last November – before word of Xerox’s interest in a deal surfaced. The latest offer values HP at around US $34.88 billion.
Xerox said it met with a few of HP’s largest stockholders before raising its bid, which consists of $18.40 in cash and 0.149 Xerox share for each HP share, according to the Wall Street Journal.
It said around 2 March was when it expects to begin its campaign to buy shares directly from investors.
HP has declined to comment for this story.
The two companies dominate different areas of the printer market and have both been cutting costs as the market for printed documents declines.