Xerox Raises Bid to Acquire HP -- WSJ

By Dave Sebastian 

This article is being republished as part of our daily reproduction of WSJ.com articles that also appeared in the U.S. print edition of The Wall Street Journal (February 11, 2020).

Xerox Holdings Corp. raised its offer to buy HP Inc. to $24 a share and said it would launch a public takeover bid early next month.

In November, Xerox made an initial stock-and-cash offer of $22 a share for the maker of computers and printers. It said Monday that the latest offer isn't tied to financing or due-diligence conditions.

HP had rejected the initial bid as too low and questioned Xerox's ability to finance a deal. In January, Xerox said it had secured up to $24 billion debt financing but HP again said the bid undervalued the company.

HP shares rose less than 1% to $21.90 on Monday.

The company had a market value of about $27 billion in early November, before word of Xerox's interest in a deal first surfaced. The latest offer values HP at about $34.88 billion.

Xerox said it met with some of HP's largest stockholders before increasing its bid, which consists of $18.40 in cash and 0.149 Xerox share for each HP share. It said it expects to begin its campaign to buy shares directly from investors around March 2.

"The tender offer announced today will enable these stockholders to accept Xerox's compelling offer despite HP's consistent refusal to pursue the opportunity," Xerox said.

HP didn't respond to a request for comment.

The two companies dominate different areas of the printer market and have both been cutting costs as the need for printed documents declines.

Xerox, which is based in Norwalk, Conn., primarily makes large printers and copy machines, while HP mainly sells smaller printers and printing supplies.

HP is also one of the biggest PC makers in the world, though its printer business is more lucrative.

Xerox has said it plans to nominate 11 independent candidates to replace HP's board at the Palo Alto, Calif.-based company's annual shareholder meeting this summer.

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(END) Dow Jones Newswires

February 11, 2020 02:47 ET (07:47 GMT)

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