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Xerox drops bid for HP; cites health crisis and economic turmoil

Xerox says it won’t move ahead with its hostile takeover bid for HP.

This battle has been going on for the last several months, with Xerox making a play for the larger company, HP, in a cash and stock offer most recently valued at $35 billion.

But in a statement Xerox put out on Tuesday, it says that the current global health crisis and resulting economic and market turmoil have created an environment that is not conducive to Xerox continuing to pursue an acquisition of HP.

Xerox says it will withdraw its offer and will no longer see to nominate a slate of candidates to the HP Board of Directors.

Xerox’s statement says there are still compelling long term financial and strategic benefits to the merger, but also said that, "While it is disappointing to take this step, we are prioritizing the health, safety and well-being of our employees, customers, partners and other stakeholders, and our broader response to the pandemic, over and above all other considerations."

HP last week issued a letter to its stockholders saying that it did not believe it should divert resources right now to a dialogue with Xerox about the proposed deal. HP has consistently expressed concerns about the takeover offer, saying among other things, the deal undervalues HP.

Randy Gorbman is WXXI's director of news and public affairs. Randy manages the day-to-day operations of WXXI News on radio, television, and online.