Xerox launches official tender for HP shares

Xerox launches official tender for HP shares 

The tender offer is an increase above Xerox's initial proposal and aligns with HP's market value of $27 billion.


Xerox  officially launched a tender offer on Monday to acquire HP. The company is providing $24.00 per share, or $18.40 in cash and 0.149 Xerox shares for each HP share. The tender offer is an increase above Xerox's initial proposal and aligns with HP's market value of $27 billion.

"Our proposal offers progress over entrenchment," said Xerox CEO John Visentin. "HP shareholders will receive $27 billion in immediate, upfront cash while retaining significant, long-term upside through equity ownership in a combined company with greater free cash flow to invest in growth and return to shareholders."
In November, Xerox offered to pay $22.00 per share for HP, consisting of 77% cash and 23% stock, or $17 in cash and 0.137 Xerox share for each HP share. HP's board unanimously rejected the bid, arguing that the offer significantly undervalued HP and was not in the best interest of its shareholders. HP's $27 billion market value is about three times that of Xerox.

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