HP and its board of directors have unanimously rejected an acquisition bid from Xerox. The offer, which had a value of US$33.5 billion (~RM139 billion), was reportedly unacceptable because it undervalued HP and was not in the best interest of shareholders.
In an interesting turn of events, HP said that it was now considering the possibility of acquiring Xerox, although it stopped short of providing any further detail. Stating instead that it recognised the “potential benefits of consolidation”.
Xerox’s bid for HP, which began at the start of this month, came about after Carl Icahn, an activist investor who owns a 10.6% stake in Xerox, bought a US$1.2 billion (~RM5 billion) stake in HP. Icahn pushed for the merger, believing that the combined might of the two companies would be to the benefit of shareholders on both sides. Despite HP’s workforce, value and presence being approximately three times greater than Xerox.
This isn’t the first time Xerox has tried to merge with a major company. Last year, it reportedly scrapped a US$6.1 billion (~RM 25 billion) deal to merge with the photography and imaging brand, Fujifilm. Fast forward to today, and the company is selling off its 25% stake in the company, while the Japanese brand agreed to drop a lawsuit against it.