HP Rejects Acquisition Offer from Xerox

On Sunday, HP Inc. launched a letter from its board of administrators stating that it rejects acquisition provide from Xerox Corporation stating that: “We have great confidence in our strategy and our ability to execute to continue driving sustainable long-term value at HP. In addition, the Board and management team continue to take actions to enhance shareholder value including the deployment of our strong balance sheet for increased repurchases of our significantly undervalued stock and for value-creating M&A.”

This resolution reveals a robust will from the oldsters over at HP to proceed their enterprise in the way in which they normally accomplished for a few years. Additionally, HP acknowledged the next: “We recognize the potential benefits of consolidation, and we are open to exploring whether there is value to be created for HP shareholders through a potential combination with Xerox. However, as we have previously shared in connection with our prior requests for diligence, we have fundamental questions that need to be addressed in our diligence of Xerox. We note the decline of Xerox’s revenue from $10.2 billion to $9.2 billion (on a trailing 12-month basis) since June 2018, which raises significant questions for us regarding the trajectory of your business and future prospects.”, exhibiting the downsides of the potential merger and questioning skills of Xerox to handle two firms.