Xerox Secures $24 Billion Financing for Proposed HP Takeover

HP rejected Xerox's offer in November saying it "significantly" undervalued the company.

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Xerox Secures $24 Billion Financing for Proposed HP Takeover

Shares of HP were up nearly 2 percent in trading before the bell

Highlights
  • HP rejected the $22 per share offer in November
  • Xerox has engaged in dialogue with many of HP's shareholders
  • HP had said it was open to exploring a bid for Xerox

Xerox Holdings said on Monday it has secured $24 billion in financing for its $33.5 billion takeover offer for HP, a deal that the personal computer maker is opposing.

HP rejected the $22 per share offer in November saying it "significantly" undervalued the company, following which the printer maker took the offer directly to HP's shareholders.

Xerox has engaged in "constructive dialogue" with many of HP's largest shareholders, the company's chief executive officer, John Visentin, said in a letter addressed to HP's board on Monday.

"My offer stands to meet with you in person, with or without your advisors, to begin negotiating this transaction," Visentin said.

Activist investor Carl Icahn, who has a 4.2 percent stake in HP and a 10.9 percent stake in Xerox, in December urged HP shareholders who agreed with a merger with Xerox to reach out to the PC maker's directors for immediate action.

HP had said it was open to exploring a bid for Xerox, stating that it recognises the potential benefits of consolidation.

Shares of HP were up nearly 2 percent in trading before the bell. The company did not immediately respond to a Reuters request for comment.

© Thomson Reuters 2019

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