HP said on Thursday that it has rejected Xerox’s unsolicited takeover offer of about $35 billion.
HP said that its board of directors, after consulting with its independent financial and legal advisors, has concluded that the offer, consisting of cash and stock, “undervalues HP and disproportionately benefits Xerox shareholders at the expense of HP shareholders.”
Chair of HP’s board, Chip Bergh, said in a statement that, “The Xerox offer would leave our shareholders with an investment in a combined company that is burdened with an irresponsible level of debt and which would subsequently require unrealistic, unachievable synergies that would jeopardize the entire company.”
Previously, Xerox has argued that a combination of the two companies could save more than $2 billion.
HP President and CEO Enrique Lores said that HP is a trusted brand that is “executing a clear plan that will drive significant earnings growth.”
Xerox is a smaller company than HP and had already raised its bid from $22 to $24 per share. Xerox already has started a proxy fight, nominating 11 candidates to the HP board of directors.
There was no immediate comment from Xerox to HP’s statements on Thursday.