Xerox increases acquisition offer for HP
Xerox is boosting its offer to acquire HP.
Xerox on Monday raised the unsolicited offer to buy HP from the previous$22 a share to $24. That is a mixture of cash and stock.
HP has so far rejected Xerox’s proposal, and Xerox officials say they have met with many of HP’s largest stockholders, and those shreholders want the improved growth and the enhanced returns that would result in the merger of the two companies.
At Brighton Securities, Chairman George Conboy says the sweetened offer may generate interest among other HP stockholders at the company’s annual meeting later this year.
“And there will be a lot in the way of shareholders saying, 'listen, we’ve got an offer on the table from Xerox. We’ve seen how Xerox’s management really has enhanced the returns at that company over the last year. And you HP people let the stock drift, maybe we should talk to Xerox,'” Conboy said.
HP previously said the Xerox offer undervalues HP and they have said they have concerns about the health of Xerox’s business. There was no immediate reaction from HP to the higher offer on Monday.