HP rejected Xerox Holdings’ $35 billion bid to take over the maker of printers, printer supplies and personal computers, again deeming the offer as too low.
HP on Thursday said a combination would disproportionately benefit Xerox shareholders and that Xerox doesn’t have the operational experience in HP’s sectors, such as personal systems, home printing and 3D and digital manufacturing.
Xerox didn’t immediately respond to a request for comment.
Xerox this week launched an effort to acquire all HP shares outstanding, valuing HP at nearly $35 billion, or $24 a share in cash and stock. It had raised the offer from $22 a share. HP said the value of the offer’s equity component poses a risk to the company and would lead to uncertainties.
The offer would leave Xerox “burdened with an irresponsible level of debt and which would subsequently require unrealistic, unachievable synergies that would jeopardize the entire company,” HP Chairman Chip Bergh said.
HP, based in Palo Alto, Calif., said Xerox’s proposed cost-cutting measures in the prospective combined company is shortsighted and that its cost-saving estimates exceed reasonable levels. It said Xerox’s declining sales and its recent sale of its interest in the Fuji Xerox joint venture raise concerns about the company’s future position.
Full Content: Wall Street Journal
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