- Xerox has announced it is withdrawing its tender offer to acquire HP and will no longer seek to nominate a slate of candidates to HP’s board of directors
Xerox has announced it is withdrawing its tender offer to acquire HP and will no longer seek to nominate a slate of candidates to HP’s board of directors. Xerox cited market turmoil by COVID-19 creating an environment that is not conducive for pursuing the deal.
“While it is disappointing to take this step, we are prioritizing the health, safety and well-being of our employees, customers, partners and other stakeholders, and our broader response to the pandemic, over and above all other considerations,” said Xerox in a statement. “There remain compelling long-term financial and strategic benefits from combining Xerox and HP. The refusal of HP’s Board to meaningfully engage over many months and its continued delay tactics have proven to be a great disservice to HP stockholders, who have shown tremendous support for the transaction.”
The back and forth between Xerox and HP started this past fall as the two companies sent letters back-and-forth about why a deal may or may not make sense. Xerox argued that a combined company would be synergistic while HP said that the proposed deal was undervaluing its company. Plus HP questioned whether Xerox would be able to raise the money for the deal.
“We remain firmly committed to driving value for HP shareholders. HP is a strong company with market leading positions across Personal Systems, Print, and 3D Printing & Digital Manufacturing. We have a healthy cash position and balance sheet that enable us to navigate unanticipated challenges such as the global pandemic now before us, while preserving strategic optionality for the future,” said HP in response to Xerox’s statement.
