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Last Updated : Jan 07, 2020 08:02 PM IST | Source: Moneycontrol.com

Xerox secures $24 billion for HP takeover, approaches shareholders directly 

Xerox has engaged in "constructive dialogue" with many of HP's largest shareholders CEO John Visentin told the Board on January 6

Xerox Holdings Corporation, on January 7, said that it had secured funds of $24 billion of the $33.5 billion proposed for its takeover of HP Inc, as per a Reuters report.

HP, however, has resisted the $33.5-billion offer made in November, which comes in at $22 per shares, on grounds that it significantly undervalues the company.

Xerox has thus approached HP shareholders directly to engage in “constructive dialogue”, CEO John Visentin informed HP’s board in a letter on January 6.

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"My offer stands to meet with you in person, with or without your advisors, to begin negotiating this transaction," Visentin’s letter stated.

Also, backing Xerox’s bid is activist and investor Carl Icahn. In December, Icahn urged for immediate action from directors in favour of the merger. Notably, Icahn holds a 4.2 percent stake in HP and a 10.9 percent stake in Xerox.

HP earlier said it was open to exploring an acquisition bid from Xerox due to the “potential benefits of consolidation,” the report noted.

Both companies did not respond to Reuters’ request for comment.

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First Published on Jan 7, 2020 09:54 am
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