Xerox may make a hostile bid for HP. That word came Thursday when Xerox released a letter that John Visentin, its Vice Chairman and CEO, sent to top HP officials, telling them that Xerox was “very surprised” that HP’s Board of Directors rejected their “compelling proposal to acquire HP…”
HP announced last Sunday that its board rejected an unsolicited takeover proposal from Xerox, but HP did not rule out the two companies talking about possibilities in the future. The initial cash and stock bid from Xerox values HP at about $33 billion. HP is more than three times Xerox’s size.
In his recent letter, Visentin said that while Xerox is glad to see that the HP board acknowledges the substantial merits of a business combination of the two companies and is open to exploring the possibility, the HP response “lacks a clear path forward.”
Visentin wrote to HP officials that unless they agree on the due diligence information needed to support “a friendly combination” by 5:00 p.m. on Monday, Xerox will “take its compelling case to create superior value for our respective shareholders directly to your shareholders.”