Xerox announced on Monday that it would launch another bid to buy out HP, this time boosting its offer price to $24 per share—or around $34 billion in total.
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In its announcement on Monday, Xerox said that it had met, “in some cases multiple times,” with many of HP’s largest shareholders, who “consistently state that they want the enhanced returns, improved growth prospects and best-in-class human capital that will result from a combination of Xerox and HP.”
https://www.forbes.com/sites/sergeiklebnikov/2020/02/10/xerox-raises-takeover-bid-for-hp-to-24-per-share/
14 replies (most recent on top)
Xerox raising their offer = even more layoffs
HP is making Xerox sweat bullets for 2 weeks. The quarter ended at HP on Jan 31st and HP already knows what their balance sheet looks like, they just have not made it public yet.
XRX only has financing for $24B. Even if XRX was a long term viable company (it isn’t), the combined company would out the gate start owing the $24B as well as the additional $10B for the deal. Say nothing about the synergies that don’t occur. That’s not “unlocking value” unless you are a corporate raider with a track record of losing.
Sounds like Xerox may hear something on Feb 24th... On Tuesday, HP signaled that it won't respond to the latest move from Xerox right away. Instead, HP plans to wait to respond until reporting its latest quarterly earnings results–an event that is now scheduled for Feb. 24.
"At that time, when out of its quiet period, HP will share additional information about its plan to drive sustainable long-term value for its shareholders, including through the execution of the Company’s multi-year strategic and financial plan and the deployment of its strong balance sheet," HP said in a news release revealing the timing of the fiscal 2020 first-quarter report.
Tender offer on or around March 2, 2020 for all of the outstanding shares of common stock of HP : Original offer was $17/share + 0.137 XRX shares (@$36.50) = $22
New offer is $18.40/share + 0.149 XRX shares (@$37.58) = $24
HPQ has ~1.5B shares outstanding = $36B
I would expect layoffs March 3....
Dear Xerox,
Go pound sand.We’ve seen what Carl has done to your company. We also see former non-performing and disliked HP execs filling your c-suite. We also require diligence which you are withholding. We also do not see the combined synergies and value being achievable. We will wait for you to fail further before purchasing you for toner capability and patents. Sincerely, HP.
Anyone know how long HP has to respond? Or did I miss the response to the offer?
now this is interesting , this gives HP 49.5 % control..i think erique wants to run the shop, but he doesnt want xerox
I feed my dog a lot better.
This is like having a brothel take over a day care center....
"In its announcement on Monday, Xerox said that it had met, “in some cases multiple times,” with many of HP’s largest shareholders, who “consistently state that they want the enhanced returns, improved growth prospects and best-in-class human capital that will result from a combination of Xerox and HP.”
Best in class human capital? Massive layoffs, many critical functions outsourced, key talent and legacy experience walking out the door, below market pay and benefits, no development opportunities, no R&D budget, etc.
Likely reply from HP to Xerox is get bent.
To be fair it is an industry issue, Xerox, unusually are ahead of the curve in that they have actually been fastest in the industry, shame it is fastest to fail.
Man I’m glad I‘m not working there any longer. What a dogs breakfast this company has become.
Apparently the hostile takeover via the shareholders and nominating those board members to the HP board did not work.................so they (Icahn) tries with more money.