John Visentin, Vice Chairman at Xerox Holdings Corp., said he was forced to focus on protecting employees in terms of the pandemics and the economic crisis associated with it. Thus, the company will temporarily give up trying to at all costs buy HP, a company with a similar profile, but much larger.
The authoritative publication Bloomberg reports that Xerox’s global plans have not changed. As soon as the situation in the world normalizes, Mr. Visentin will get back to convincing HP to sell him the company.
About a week ago, Xerox put forward another offer to buy all of the outstanding HP shares at $ 24 per unit. Thus, the company was valued at approximately $ 35 billion.
We recall that on numerous occasions HP representatives rejected the attempts of Xerox to agree. At the end of February, there was a turning point – HP’s top managers said they were ready to consider the Xerox proposal. By the way, HP has a capitalization of approximately $ 25 billion, while Xerox has a capitalization of approximately $ 5.1 billion. Xerox is going to raise funds to finance purchases from around the world; they managed to convince a huge number of banks (including Citi, Mizuho and Bank of America) that it was worth it.
The crisis has clipped wings to ambitious businessmen. Xerox shares have fallen 40.5% over the month, HP securities have dropped about 24%.
The material was prepared with the participation of Katya Wilson,
a leading analyst of the brokerage company UFT Group