Xerox prepares to take HP buyout bid hostile
Xerox said on Tuesday it was planning to take its $33.5 billion buyout bid directly to HP shareholders after the personal computer maker refused to open its books for due diligence before a deadline.
“We plan to engage directly with HP shareholders to solicit their support in urging the HP Board to do the right thing and pursue this compelling opportunity,” Xerox said in a letter to HP’s board.
HP on Sunday rejected Xerox’s $22 per share offer that consists of $17 in cash and 0.137 Xerox share for each HP share, saying the offer “significantly undervalues HP”.
Last week, Xerox threatened to take its bid hostile, if HP did not agree to a “friendly” discussion and open its books before Monday. Xerox made the offer for HP, a company more than three times its size, on Nov. 5, after it resolved a dispute with its joint venture partner Fujifilm Holdings Corp that represented billions of dollars in potential liabilities.
Via: Reuters
