In a statement February 10, Xerox Holdings Corp. renewed its efforts to buy HP Inc., this time in exchange for $18.40 in cash and 0.149 Xerox shares for each share of HP. That’s a total of $24 per share based on Xerox’s February 6 closing price, up $2 a share from their last offer of $22 a share.
Xerox has been after HP Inc. since August 2019. A letter from HP issued in November refers to private discussions with Xerox that took place in August and September of that year. According the letter, those discussions fell through after Xerox refused to answer certain questions about its viability and valuation of HP.
Xerox, for its part, said that HP’s board of directors “defies logic” by refusing to commit to mutual due diligence after Xerox opened their books for the larger hardware company. In a letter dated November 26, they swore to appeal directly to HP’s shareholders. Apparently to that end, Xerox launched a website entirely dedicated to promoting the purchase plan and on January 23, announced its intent to nominate a full slate of directors for consideration at HP’s director meeting.
In response, HP issued a statement pledging “unwavering” commitment to HP shareholders in general—as opposed to Carl Icahn, specifically, who owns shares in both companies. In the statement, HP said Icahn “has meaningful influence over Xerox and its Board of Directors” and would “disproportionately benefit from an acquisition of HP by Xerox at a price that undervalues HP.”
According to the latest statement from Xerox, the printer company’s latest offer will enable HP stockholders to accept Xerox’s “compelling offer despite HP’s consistent refusal to pursue the opportunity.”
The latest offer by the printer manufacturer says it will launch the tender offer sometime around March 2. According to Xerox, the offer is not subject to financing or due diligence conditions. At press time, HP had not responded to the latest offer.