HP once again rejected Xerox’s takeover bid

Earlier, we reported that Xerox officially filed an offer for HP on March 3 at a price of $24 per share. Of the $24, $18.4 would be paid to HP shareholders in cash and the remaining money would be converted into the shares of the combined company.

Xerox Chief Executive Officer and Deputy Chairman, John Visentin said of the tender offer: Because the combined company will have greater cash flow and can invest more than HP today, it will provide HP shareholders with Higher long-term benefits.

“HP Services”by andy bryant is licensed under CC BY-NC-SA 2.0

Unsurprisingly, HP once again rejected Xerox’s tender offer, saying it was because Xerox underestimated the value of HP. HP Chairman, Chip Bergh said in a statement: Xerox’s offer significantly underestimates HP, and the acquisition provides Xerox shareholders with significantly higher returns.

With regard to Xerox’s vision of the merged company, HP Chairman Chip, Bergh responded: Xerox’s takeover bid mentioned that some of our shareholders’ shares would be converted into shares of the merged company, but after the merger, Companies will carry huge debts. If they need to pay off the debts, they need efficient working methods, otherwise, the company will fail.

Via: Reuters