HP reiterates its rejection of Xerox's takeover offer

Nov 24, 2019

Officials with HP have again said they reject a takeover proposal from Xerox.

In a letter released on Sunday from HP CEO Enrique Lores and Chairman Chip Bergh, they tell Xerox Vice Chairman and CEO John Visentin that the HP board of directors has reviewed a letter that Visentin sent last week, where he said that Xerox was “very surprised” that HP rejected the Xerox offer, and said that unless HP agreed to release certain information needed to support “a friendly combination” by 5:00 p.m. on Monday, Xerox would take its case directly to HP shareholders.

The letter sent on Sunday from HP’s top officials again says that the Xerox offer significantly undervalues their company. HP also has doubts about Xerox’s ability to raise the money needed for the proposed deal.

HP’s letter raises questions about Xerox’s revenues and strategic direction.

The HP officials say that they still are prepared to study the potential value of a combination but say they “will not let aggressive tactics or hostile gestures distract us from our responsibility to pursue the most value-creating path.”