HP Statement on Possibly Being Acquired by Xerox
Today, according to The Wall Street Journal, Xerox, which stands to reap $2.3 billion from a pending sale of its 25-percent stake in Fuji Xerox to Fujiflm, may be considering purchasing HP Inc. in a a $27 billion cash-and-stock deal.
HP Inc. did indeed confirm it had received a proposal offer from Xerox, issuing the following statement today confirming the offer:
“As reviewed at HP’s most recent Securities Analyst Meeting, we have great confidence in our multi-year strategy and our ability to position the company for continued success in an evolving industry, particularly given the multiple levers available to drive value creation.
“Against this backdrop, we have had conversations with Xerox Holdings Corporation (NYSE: XRX) from time to time about a potential business combination. We have considered, among other things, what would be required to merit a transaction. Most recently, we received a proposal transmitted yesterday.
“We have a record of taking action if there is a better path forward and will continue to act with deliberation, discipline and an eye towards what is in the best interest of all our shareholders.”
According Wall Street Journal sources, Xerox board members have been discussing an acquisition, and have received an informal funding commitment from a major bank.
One of the interesting things about such a sale would be that Xerox is the lower-valued company ($8.8 billion), while HP Inc. is valued higher at $27 billion.