Xerox in talks on takeover offer for HP – WSJ
Xerox Holdings Corp is considering making a cash-and-stock offer for personal computer maker HP Inc at a premium to its market value of about $27 billion, the Wall Street Journal reported on Tuesday, November 5, 2019.
WSJ, citing people familiar with the matter said Xerox’s board discussed the possibility on Tuesday. There is no guarantee that Xerox will follow through with an offer or that one would succeed, it added.
Norwalk, Connecticut-based Xerox has also received an informal funding commitment from a major bank, the Journal said.
On Monday, Xerox had said it will sell its 25% stake in Fuji Xerox, its joint venture with Fujifilm Holdings, for $2.3 billion, after investor activism scuppered a deal involving the two companies.
Xerox had scrapped its $6.1 billion deal to merge with Fujifilm last year after lobbying by two of its main investors, Carl Icahn and Darwin Deason, Reuters reports.
HP has been struggling with its printer business segment recently, with the division’s third-quarter revenue dropping 5% on-year. In October, it had announced a plan to cut up to 9,000 jobs as part of a restructuring program aimed at cutting costs.