Xerox Seeking Takeover of HP Inc. Board

According to Bloomberg News and The Wall Street Journal, Xerox has purchased a small stake in HP Inc. and is preparing to seek control of HP  board. HP has twice rejected a $33 billion acquisition offer from Xerox, stating that the the offer, which amounts to $22 per share, undervalues it.

Xerox is expected to submit at least a majority slate of directors ahead of a Friday deadline for nominations to the 12-member HP board, according to  people who asked not to be identified. Xerox’s stake in HP wasn’t disclosed, but it isn’t among the top 10 shareholders. Among those top shareholders is Icahn Enterprises, which holds a 4.33 percent stake in HP.

Any persons nominated by Xerox would have to be elected by HP shareholders at a meeting to be held this summer. If elected, those shareholders would likely approve Xerox’s acquisition of HP.

According to Bloomberg News: “Xerox has no plans at this point to increase its bid for HP, the people said. The company is still finalizing its plans and may choose to run a full slate to replace the entire board, the people said.

Earlier this month, Xerox announced that it had arranged a $24 billion loan with a group of banks to finance its acquisition of HP, but HP again rejected Xerox’s acquisition offer.

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