Xerox attempted for the first time to acquire HP in the month of November with an offer of $ 22 for each share, with total value of more than $ 30 Bn.
American global corporation Xerox Holdings has taken an aggressive approach by rising a bid of around $ 35 to take over HP. Previously, an attempt of acquiring HP had faced rejection, however, now Xerox has planned to present a tender offer of $24 per share for all the outstanding shares of HP by March 2. According to Associated Press, the offer includes 0.149 shares of Xerox for each share of HP and $ 18.40 in cash.
Company in its statement said that at multiple times in various cases, Xerox Holdings met many largest stockholders of HP. These stockholders have constantly been stating that they want higher returns, better growth prospects, and top-rated human capital will collectively result only from the combination of HP and Xerox. Reportedly, the tender offer has recently announced which will allow the stockholders to give their consent on the convincing offer of Xerox in spite of constant refusal from HP to pursue the opportunity.
First Attempt of Acquisition for $ 30 Bn Fails in 2019
Last year, Xerox attempted for the first time to acquire HP in the month of November with an offer of $ 22 for each share, with the total value of more than $ 30 Bn. The board of directors of HP dropped the proposal, nevertheless, Xerox showed no interest in withdrawing the attempt and threatened HP to directly take the offer to the stakeholders if HP did not accept the deal. Consequently, the attempt was rejected once again.
Xerox, however, made a bold move in the last month to acquire HP. As a part of its effort of acquisition, it nominated independent candidates for the replacement of BoD at HP. It consists of former representatives of various companies including Verizon, United Airlines, Novartis and Hilton Hotels. It is interesting to note HP’s reaction to this latest proposal of acquisition by Xerox.