HP again rejects takeover offer from Xerox

Xerox said it had secured US$24 billion of financing for a potential acquisition of HP.
Xerox said it had secured US$24 billion of financing for a potential acquisition of HP.PHOTO: AFP

SAN FRANCISCO (BLOOMBERG) - HP again rejected an unsolicited takeover offer from Xerox Holdings, saying the potential deal "significantly undervalues" the personal-computer maker.

Xerox said on Monday it had secured US$24 billion of financing for a potential acquisition of Palo Alto, California-based HP. The debt commitment "is not a basis for discussion," HP said on Wednesday (Jan 8) in a letter to Xerox chief executive officer John Visentin. "The HP board of directors remains committed to advancing the best interests of all HP shareholders and to pursuing the most value-creating opportunities."

Xerox said Citigroup, Mizuho Financial Group and Bank of America provided the financing for the printer maker to pursue its $22-per-share cash-and-stock acquisition bid.

HP has repeatedly snubbed the offer, saying its announced restructuring plan will provide greater value to shareholders. Xerox has left open the possibility of sparking a proxy fight or introducing a tender offer to close the deal.