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Last Updated : Jan 22, 2020 10:23 AM IST | Source: Reuters

Xerox to nominate as many as 11 directors to HP's board in takeover push: Report

The stake would give Xerox the right to nominate directors for elections to be held at the HP's annual meeting this summer, the report said, adding that the deadline to nominate directors is Friday, and Xerox could still decide to not follow through with the nominations.

Xerox
Xerox

Xerox Holdings Corp is preparing to nominate as many as 11 directors to HP Inc's board, the Wall Street Journal reported on Tuesday, as the company seeks to push its $33.5 billion takeover offer for the personal computer maker.

The U.S.-based printer maker bought a small stake in HP in recent weeks, the newspaper reported, citing sources.

The stake would give Xerox the right to nominate directors for elections to be held at the HP's annual meeting this summer, the report said, adding that the deadline to nominate directors is Friday, and Xerox could still decide to not follow through with the nominations.

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In November last year, Xerox made the $33.5 billion cash-and-stock offer to HP, a company more than three times its size. HP had rejected Xerox's offer, saying it significantly undervalued the company.

Activist investor Carl Icahn, who has a 4.2% stake in HP and a 10.9% stake in Xerox, in December urged HP shareholders who agreed with a merger to reach out to the PC maker's directors for immediate action.

Earlier this month, Xerox said it secured $24 billion in financing for the proposal. HP, however, rebuffed the talks again and said securing financing is not a basis for a discussion and reiterated that the proposal still undervalues the company.

Both companies did not immediately respond to Reuters' requests for comment after regular business hours.

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First Published on Jan 22, 2020 10:15 am
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