https://finance.yahoo.com/news/icahn-suggested-hp-buy-xerox-003035218.html
10 replies (most recent on top)
Icahn does not have a reputation for being a patience man nor has he shown interest over the years in long-term deals. Thus, I do believe he assumed that he would have been done with Xerox by the end of 2019 at the latest and trying to force a marriage with HP is a result of such. As for FX, it was likely a combination of his short-term interest in Xerox and a lot of bruised egos and posturing between Icahn, Deason, Jacobson, and Komori that caused some basic facts to be ignored in order to save face.
Icahn made a critical error here in severing the relationship with Fuji. Not sure if he didn't realize Fuji basically makes all the technology or perhaps he didn't realize the purchase of Xerox would take so long. Nonetheless, it'll be interesting to see how this plays out now that Xerox has been gutted by this scumbag and revenues continue to plummet. What does Xerox do for parts once the agreement with Fuji ends in early 2021???
If you read the article, Icahn made this suggestion late last year. This is not a recent event.
Does that mean the personal wine & dining of HP shareholders isn’t paying off? Why would HP buy Xerox and potentially inherit Xerox’s main shareholders Icahn & Deason .
Talk about contaminating HP with a incurable toxic virus.
““I certainly did not offer my stock in Xerox in that discussion or, for that matter, in any discussion,” he said in an interview. “Frankly, I am getting tired of anonymous statements that keep popping up alleging that my stock in Xerox is for sale, which couldn’t be further from the truth…””
Icahn doesn’t want to sell his shares Xerox? LOL. As soon Xerox’s share price goes above $40/share, which is what he promised his partners when he launched his coup, he’s selling. Whether that number is achieved by inflating Xerox’s value by acquiring HP or HP offering that price for Xerox, he doesn’t care. Afterall, one of his partners, Mr. Deason, publicly announced his intent to put Xerox up for Auction on May of 2018 even before the coup was completed.
He is telling the truth here though – “…because I believe so strongly in the synergies that exist in a combination between Xerox and HP and I certainly want to own a piece of those synergies…it is of paramount importance that John Visentin and his team are the surviving management of the combined company.”
He has JV in his pocket and knows JV will do whatever Carl tells him to do. While HP is also struggling, though not as much as Xerox as it’s a more diversified company in terms of product offerings, it still generates a lot of cash (roughly $4 Billion in free cash flow at the end of 2019 compared to about $800 Million at Xerox). That’s a lot of money that Carl can raid by stripping every single cost item out, especially people, like he has done at Xerox, leaving just a hallow shell of a company behind saddled with a massive debt load while he moves on to his next victim.
Icahn’t wait to see how this plays out
Unless icahn gets his director nominees on the board...
For those that didn’t think this was the end game all along you’re filling yourselves. But why would they when they can HP wait for Xrx to fall apart and pick off the pieces one by one at drastically discounted rates
Another prediction from this board that came true, relating to this being posturing to get HPQ to buy XRX. But the Xerox situation has become known to HP, making it unlikely that they will go for it in the short term. They will do much better to wait 12-18 months for a significant XRX stock price decline as business operational failures become apparent to the analysts.
Yes, Icahn is getting desperate.