Xerox abandons $35B bid for rival HP amid coronavirus pandemic
The coronavirus crisis has forced Xerox to abandon its $35 billion attempt at a hostile takeover of larger rival HP.
Xerox is withdrawing its cash-and-stock offer for HP because the viral pandemic has created conditions that are “not conducive” to getting the deal done, the Connecticut-based printer maker said Tuesday.
Xerox added that it still sees financial and strategic benefits to the merger, which it first proposed in November. The deal reportedly had support from billionaire investor Carl Icahn, who owns stakes in both companies and argued that their combination could lead to significant cost savings.
HP, which makes printers and personal computers, firmly opposed the proposal even after Xerox raised its offer to $24 a share and nominated a slate of directors to HP’s board. The California-based firm has said Xerox’s bid undervalued HP and raised concerns about the amount of debt involved.
April 6, 2020