Andrew Wagner

Xerox's board of directors spoke Tuesday regarding a possible acquisition of HP.

Xerox Holdings Corp. has plans to takeover personal-computer and printer maker HP Inc., according to The Wall Street Journal.

Xerox's plan includes a cash-and-stock offer for HP that would include a hefty premium above HP's market value of $27 billion. Xerox's board discussed the possibility of the acquisition on Tuesday.

Xerox has not committed to making an offer yet and is not sure whether HP would accept their offer. HP is about three times as large as Xerox and would expect a price well above its current stock price.

Both companies have implemented cost-cutting strategies where they attempt to restore their business amid the decline in the need for printed documents. HP shares are down over 10 percent on the year and Xerox shares are up 84 percent this year, following the announcement of the cost-cutting strategy.

Xerox has not committed to attempting to purchase HP, but the idea was discussed on Tuesday by board members.

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