Xerox Increases Its Bid For HP Acquisition
Xerox Holdings Corp. increased its offer to purchase HP Inc. to $24 a share, according to The Wall Street Journal.
Xerox also announced that it was planning to launch a public takeover bid next month. The new offer was an increase from Xerox's November offer of $22 a share, which HP rejected because the bid was too low and over concerns that Xerox was able to finance the deal.
Xerox has been persistent with its objective and in January informed HP that it had secured $24 billion in debt financing, but HP again rejected the bid as too low. HP's market value is currently around $32.63 billion.
This new offer values HP around $34.88 billion, a $2 billion premium if the offer was accepted. “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 said.
Xerox Holdings Corp. increased its offer to purchase HP Inc. to $24 a share.