Xerox Raises It's Offer To Buy HP Inc
Xerox has come out public to buy HP by offering HP by two dollars per share( $2 to touch $24 per share. Previously the offer for HP had been $22.00 in what had started out as an acquisition effort in November 2019.
Xerox said its latest offer comprises $18.40 in cash and 0.149 Xerox shares for each HP share - valuing the company at about $35 billion - and that it plans to launch a tender offer on or around March 2,2020 . HP shares rose nearly 3% to $22.31, while Xerox was up about 1%.
Xerox offer has become a highly leveraged hostile takeover attempt, with Xerox announcing an attempt to replace the HP board with eleven of its own nominees and that it had secured $24 billion in financing for the offer for HP Inc, a deal that the personal computer maker is opposing. A number of analysts have speculated that the higher offer might be enough to convince HP to open discussions with Xerox.
Xerox Holdings Corp is reported to be considering a takeover of personal computer and printer maker HP Inc, which is thrice its size, in a move that would merge the two rivals in the market for printers.
Citi is acting as Xerox’s financial advisor, and King & Spalding LLP is providing legal counsel to Xerox. Willkie Farr & Gallagher LLP is providing legal counsel to Xerox’s independent directors, and Moelis & Company is acting as financial advisor to Xerox’s independent directors.
However, it’s not clear that the higher Xerox offer for the much larger HP will be enough sweeter for stockholders to bite, because there are some substantial questions about Xerox’s ability to integrate HP into its operations.
Analysts have said a merger would help the companies in a declining printing market, while others have cited challenges to integration, given their different offerings and pricing models.
Amazon adds more kirana shops and delivery partners to meet on
With the entry of Reliance’s JioMart, India’s ecommerce market are heat...
EnableX.io brings in FaceAI, face analysis and emotion recogni
EnableX.io has announced the launch of its Face Analysis and Emotion Reco...
BigBasket aiming to raise $100 million in funding from Temasek
The entry of JioMart has heated up the online grocery rat race, and the c...