Xerox Considers Bidding for PC Manufacturer HP -WSJ

Xerox Considers Bidding for PC Manufacturer HP -WSJ
The Xerox company logo on a screen on the floor of the New York Stock Exchange (NYSE) in New York, USA, on November 11, 2019.

Xerox Considers Bidding for PC Manufacturer HP -WSJ

 

Xerox Holdings Corp is considering a cash and stock offering to acquire PC manufacturer HP Inc with a premium over its market value of about $27 billion, the Wall Street Journal reported Tuesday.

Xerox’s board discussed this possibility Tuesday, the newspaper said, citing sources familiar with the issue.

There is no guarantee that Xerox will go ahead with the offer or that it will succeed, they added.

Xerox, headquartered in Norwalk, Connecticut, has received an informal funding commitment from a large bank, the Journal said.

On Monday, Xerox said it will sell its 25 percent stake in Fuji Xerox, its joint venture with Fujifilm Holdings, for $2.3 billion after activist investors destroyed an agreement between the two companies.

Xerox renounced its $6.1 billion plans to merge with Fujifilm under pressure from two of its major investors: Carl Icahn and Darwin Deason.

HP is struggling with its printer division, whose third-quarter profit fell 5 percent year-over-year in the third quarter.

In October, it had announced a plan to reduce up to 9,000 jobs as part of a restructuring program aimed at reducing costs.

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