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Xerox Fires Back at Hp With Threat of Hostile Takeover, Gives Hp a Time Sensitive Ultimatum.
Xerox has threatened to go over the heads of the HP board and push through a hostile takeover with HP shareholders.
HP last week rejected Xerox’s opening bid in unceremonious fashion, questioning its counterpart’s business model and falling revenue.
Xerox has now said that its board is “determined to expeditiously pursue our proposed acquisition of HP to completion”, adding that it sees “no cause for further delay”.
The vendor also voiced its dissatisfaction at the fact that HP has refused to enter a period of due diligence, despite Xerox obliging for HP.
It threatened that, if HP has not agreed to mutual due diligence by 5pm eastern US time on Monday, it would attempt to push through a hostile takeover.
“Xerox will take its compelling case to create superior value for our respective shareholders directly to your shareholders,” Xerox CEO John Visentin said in a letter to HP Inc CEO Enrique Lores.
“The overwhelming support our offer will receive from HP shareholders should resolve any further doubts you have regarding the wisdom of swiftly moving forward to complete the transaction.”
Xerox said that it was surprised HP Inc rejected its initial offer of $22 per share, claiming it fell in line with the guidance from HP’s adviser Goldman Sachs.
“Our offer represents a 57 per cent premium to Goldman’s price target and a 29 per cent premium to HP’s 30-day volume weighted average trading price of $17,” it added.
Author2019-11-21 at 11:16:37 am
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