NEW YORK • Xerox said on Tuesday that it would take its hostile takeover offer for HP to shareholders after the computer and printer maker rejected the US$33 billion (S$45 billion) offer.

The copy machine pioneer said it would make its case to shareholders because the HP board "continues to obfuscate and make misleading statements" about the proposed tie-up.

"The potential benefits of a combination between HP and Xerox are self-evident," Xerox chief executive John Visentin said in a letter to HP's board. He said HP's "refusal to engage in mutual due diligence with Xerox defies logic".

On Sunday, HP reiterated its rejection of a tie-up, saying the Xerox offer "significantly undervalues" the firm. The HP board said in a letter that the offer is clouded by "uncertainty regarding Xerox's ability to raise the cash portion of the proposed consideration".

Meanwhile, HP on Tuesday gave a profit forecast that topped Wall Street estimates, projecting optimism that restructuring will pay off while spurning Xerox's bid.

Profit, excluding some items, will be US$2.24 a share to US$2.32 a share in fiscal 2020. Analysts, on average, estimated US$2.24, according to Bloomberg data. In the fiscal fourth quarter, the hardware maker's sales and adjusted profit topped analysts' projections.

Xerox has made a move for HP to consolidate the printing business at a time when both firms are stumbling. HP's printing division, a major source of profit, has seen falling sales because of weaker demand for ink supplies. It has announced a major restructuring to stabilise the company, which could result in as much as a 16 per cent cut in its workforce by the end of fiscal 2022.

AGENCE FRANCE-PRESSE, BLOOMBERG