Don’t let Xerox take you over. I worked for them for many years and I now work for an HP dealer. Sales are drastically picking up as customers like HP copiers and people are becoming aware HP is in the A3 market. Be patient and HP will succeed. A merger with Xerox will k–l HP. Stand proud as we can do this without Xerox and succeed.
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“If you’re listening” — so funny. Of course they’re listening...to their own self-interest. Not yours, not the company’s.
Visentin only lasted two years at HP
Hewlett Packard Enterprise
Total Duration1 yr 11 mos
TitleExecutive Vice President and General Manager, Enterprise Services
IBM
Total Duration9 yrs 10 mos
TitleGeneral Manager, Integrated Technology Services North America
https://www.linkedin.com/in/johnvisentin/
Definitely the place executives go for some advice, so I am sure your post will have a huge impact.
1) $2B savings is challenging. Even if Xerox swapped out their entire supply chain, IT, back office for HP’s , it doesn’t come close. And no one said the buyer would be giving up the SAG...
2) xerox has no vision under CEO JV other than cost down, EPS up. They have no viable revenue engine in the pipeline, but are misleading investors on the readiness of their metal 3D space.
3) this “offer” is little more than CEO trying desperately to get stock to $40 so Icahn can cash out. It has nothing to do with combined value or what HPQ might do during the run-up to what is a high risk acquisition.
4) this “offer” and the urgency (Monday deadline) belongs more in a mob meeting than in the light of day, but is being pressed out of desperation because a few things are looming that will be big nails in XRX coffin, including Q4 results, empty pipeline, debt coming due 2020, and impact of the deep staff reductions on the customer satisfaction levels. Only diligence will reveal the extent of these items, something XRX has been less than open to from us.
As a shareholder and employee, I say “no deal”.
I would question the $2B in savings. HP already has a significant spend that leverages both PCs and Printers. Xerox is really focused on 2 markets- enterprise print and copies, and managed print services and both markets are really circling the drain. HP has a significant commercial print business that is growing- the digital print market. Xerox is focused on direct sales and delivery of managed print, while HP has gotten out of the SMB market for managed print and turned it over to resellers. The Managed print business is really a low margin business with the major costs in labor, and distribution costs.
This is Icahn getting desperate to save his Xerox investment. The Xerox CEO was also fired from HP by Whitman for not getting the EDS/HP merger going on time. So not a great track record.
It’s going to happen on way or the other.
It’s likely too late for that, Icahn has his heels dug in deep now. This deal (whatever shape or form) would mostly be advantageous to protect and consolidate market from competitors and provide the world with best in breed in current segments where both sides currently play and more. I think the time is fast approaching for both sides to come together and play nice. In reality, although this may turn ugly short term, consolidation is required, improvements in the market are too which should further enhance for both Manufacturer and the channel.