Xerox's previous attempts to strike an acquisition deal with HP have been met with rejections. Today, the company is taking a more aggressive approach by raising its takeover bid for HP to nearly $35 billion (via Associated Press).
Xerox plans to launch its tender offer for all of HP’s outstanding shares at $24 per share on or around March 2. The offer consists of $18.40 in cash and 0.149 Xerox shares for each HP share. In a statement, the company says:
"Xerox has met, in some cases multiple times, with many of HP’s largest stockholders. These stockholders consistently state that they want the enhanced returns, improved growth prospects and best-in-class human capital that will result from a combination of Xerox and HP. 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 made its first attempt to acquire HP in November of last year with an offer of $22 per share, for a total value of over $30 billion. HP's board of directors declined the proposal. However, Xerox did not withdraw from its intention and even threatened HP to take its offer directly to shareholders if the latter didn't agree to a deal. The move was rejected again.
Last month, Xerox made another bold move as part of its effort to acquire HP: it nominated a list of "independent" candidates to replace the entire Board of Directors at HP. The slate includes former executives from companies like United Airlines, Hilton Hotels, Novartis, and Verizon. It remains to be seen now how HP will react to Xerox's latest proposal for a takeover.
Image via Zack Seward (Flickr)
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