Carl Icahn Is Pushing For A Xerox-HP Merger
Carl Icahn, an investor and billionaire, is pushing for a merger between Xerox and HP.
Currently Icahn has a 10.6% stake in Xerox and a 4.24% stake in HP. The stake in HP is valued at approximately $1.2 billion. The pressure to merge comes soon after a proposal from Xerox to buy HP.
Xerox is looking to buy HP at $22 a share, which would add up to a cost of $33 billion. The proposal itself is interesting because Xerox is 3 times smaller than HP. However, the merger would ensure that two major players in the printer industry would collaborate and potentially stave off decline from the digital age.
“I think a combination is a no-brainer. I believe very strongly in the synergies…there will probably be a choice between cash and stock, and I would much rather have the stock, assuming there’s a good management team,” Icahn said.
The printer industry has been under pressure in recent years. Both companies have worked to cut costs. Xerox has made plans to cut $640 million in costs while HP is working to save $1 billion annually. The merger is estimated to bring about $2 billion in cost savings.