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.

In the latest WXXI Business Report, Paychex is out with a survey on how the owners of small and medium sized businesses feel about the coronavirus.

 Plus, we get an expert's take on what's next in the ongoing effort by Xerox to take control of HP, and there's some growing pains for Canopy Growth, the Canadian-based pot producer that has a major investment from Constellation Brands.

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.”

In the latest WXXI Business Report, Southern Tier manufacturer Alstom is producing dozens of train cars for Amtrak's new Acela fleet.

The HP-Xerox saga continues, as Xerox continues their attempts to buy HP; plus Monroe Wheelchair is under new ownership. 

HP is trying to fight a hostile takeover offer from Xerox by adopting a shareholder rights plan. On Thursday, HP said that its Board of Directors adopted the plan, which it said “Guards against coercive tactics” to gain control of the company without paying all shareholders an appropriate premium.

HP’s statement said that its board is focused on creating long term value for its shareholders and it wants to make sure they have sufficient time when considering an offer from Xerox. HP officials said that they are concerned “about Xerox’s aggressive and rushed tactics.”  

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.

In the latest WXXI Business Report, Xerox is still pursuing HP, and is now increasing its acquisition offer for the company. Plus, a new report from Paychex shows continued wage growth among small businesses, and Kodak had a strong presence at Sunday's Oscars.

Xerox on Thursday confirmed what financial media had been reporting earlier this week, and that is that the company intends to nominate 11 independent candidates to replace HP’s Board of Directors.

That will happen at HP’s annual meeting this summer.

Xerox said in a statement that the candidates were chosen because of “their expertise overseeing and executing significant company transformations and combinations, with demonstrated track records of creating value for shareholder.”

Xerox reportedly is preparing to try and get control of the board of HP, after that company has so far rejected the unsolicited takeover bid from Xerox.

In the latest WXXI Buiness Report, just ahead of his State of the State address, Governor Andrew Cuomo gave some details on three high-tech companies in Rochester that will add a total of more than 700 jobs.

Plus, Xerox says it has secured financing needed to help it acquire HP but HP management is still resisting the takeover bid; and details about new life for former Peebles stores in the region.