Xerox secures $24bn financing for proposed HP takeover
Printer firm appealed directly to HP shareholders after offer was rejected
Xerox Holdings has secured $24bn (£18bn, €21.5bn) in binding finance commitments from Citi, Mizuho and Bank of America for its unsolicited $33.5bn takeover offer for HP.
HP initially rejected the $22 per share offer of $17 in cash and 0.137 Xerox shares for each HP share, in November saying it “significantly” undervalued the company. Xerox then took the offer directly to HP’s shareholders and has since engaged in “constructive dialogue” with many of its largest shareholders, said Xerox chief executive, John Visentin.
HP is not against the tie-up, saying it recognises the potential benefits of consolidation but wants the tables turned. It has said it will agree to a deal that involves it acquiring Xerox.
Xerox’s takeover bid came after the printer firm sold off its £2.3bn stake in Fuji Xerox to Fujifilm, ending a bitter dispute between the two companies. Fujifilm will end its office equipment sales partnership with Xerox next year, allowing Xerox to enter the growing Asian markets.
The acquisition between two giants of the tech sector - Connecticut-based Xerox, formed in 1906, and California-based HP, created in 1939 – has always been treated as hostile by HP and the two have traded insults and accusations in public. HP accused Xerox of using “aggressive words and actions” to force through a deal without providing sufficient information.
HP shares were up 0.73 per cent on early trading.
FURTHER READING: Xerox threatens HP with hostile buyout after rejection
FURTHER READING: HP board knocks back Xerox takeover bid