Stock market quotes, forex, financial news, forex tools – money-investing.com

Xerox did not convince HP board to sell the company

 Breaking News
Xerox did not convince HP board to sell the company
November 18
13:00 2019

We have already written about the possible merger of two old and reputable companies, which would benefit both. The story continued: Xerox Holdings Corp put forward a formal offer to HP Inc and the board of directors unanimously rejected it.

This became known through an official letter posted on the HP website. The message says that Xerox greatly underestimates HP, and the proposal is completely not interesting to the company’s shareholders.

Xerox, with a market value amounts to $ 8.4 billion, made an offer to buy HP for $ 33 billion. Thus, it would have been $ 22 per share, 17 of which were to be paid with “live” money, and the remaining 5 – in shares.

HP is currently valued at $ 30 billion. Xerox was going to use borrowed funds to finance the deal. By the way, it was precisely this moment that made the board of directors reject the deal. This is a logical step, given the fact that the history of the joint company will begin to combat the consequences of a huge amount of debt.

However, in one form or another, a merger remains possible, as both companies are aware of the benefits of this step.

 

The material was prepared with the participation of Katya Wilson,
a leading analyst of the brokerage company
UFT Group

Related Articles

0 Comments

No Comments Yet!

There are no comments at the moment, do you want to add one?

Write a comment

Write a Comment