NEW YORK (BLOOMBERG) - HP Inc is preparing to reject Xerox Holdings' request to open its financial books on Sunday (Nov 24) after turning down its unsolicited merger offer last week, according to people with knowledge of the matter.

HP executives are concerned that their stockholders wouldn't welcome a merger with Xerox, and that a sale of the business to other parties or share buybacks could realize better value. HP also believes Xerox's urgency to complete the transaction illustrates the pressures facing its rival, the people said.

HP is also concerned that the termination of Xerox's joint venture with Fujifilm Holdings has damaged its ability to sell in Asia, according to the people, who asked not to be identified discussing the matter. Representatives of HP declined to comment.

Xerox said last week that it would take its case directly to shareholders unless HP agreed to "mutual confirmatory due diligence" by 5pm on Monday, Nov 25. Xerox could launch a proxy fight or tender offer to gain control of its larger rival.

HP's board unanimously rejected Xerox's US$22-a-share offer last week, citing concerns about Xerox's prospects in the printing industry.

HP is "open to exploring" a merger but there are "fundamental questions that need to be addressed," chief executive officer Enrique Lores and ChairmanChip Bergh wrote in a letter to Xerox CEO John Visentin earlier this month.