NO means NO: HP refuses an offer of Xerox Takeover.
The manufacturer of computers and printers HP reiterated on Sunday its rejection of the offer to acquire $ 33 billion of Xerox, saying the sum “significantly underestimates” the company. A tie-up would unite two firms with storied histories: Xerox was founded in 1906 and became a household name with its copy machine.
HP, which dates back to 1939, began manufacturing audio equipment but ended up being one of the first leaders in the Silicon Valley technology industry.
“We reiterate that we reject Xerox’s proposal as it significantly underestimates HP,” the HP board of directors said in a letter. Also adding, “There is still uncertainty regarding Xerox’s ability to increase the cash portion of the proposed consideration.”
Last week, Xerox said he was “very surprised” by HP’s first rejection of the cash and stock offer, which sets a value of $ 22 per share for the IT company. The offer represents a premium of 29 percent of HP’s recent average quoted price, said Xerox President and CEO John Visentin.
Activist investor Carl Icahn recently told The Wall Street Journal that the link was “obvious” that would increase returns for shareholders of both companies.
In the absence of an agreement, Xerox said it would “take its compelling argument to create superior value for our respective shareholders directly to its shareholders.”