HP Inc again reiterated that it would reject Xerox’s offer to buy the company for the value of $33.5 billion for cash and stock. In addition to this, HP Inc said the offer “significantly undervalues HP.”
The computer manufacturer said that it rebuffed Xerox’s proposal but opened the bid for exploration. Xerox offered $22 per share to HP shareholders: $17 in cash and a Xerox share of 0.137 for every HP share.
“We reiterate that we reject Xerox’s proposal as it significantly undervalues HP,” in a public letter, HP wrote to Xerox in response to the offer.
“There continues to be uncertainty regarding Xerox’s ability to raise the cash portion of the proposed consideration and concerns regarding the prudence of the resulting outsized debut burden on the value of the combined company’s stock even if the financing were obtained,” HP said in the letter.
HP also expressed concerns regarding Xerox’s exit from its joint venture with Fujifilm earlier this month, saying that it left a “sizeable strategic hole in Xerox’s portfolio.”
Xerox threatened HP that it would pull out it $33.5 billion hostile offer if HP refuses to open its books before Monday and be open to a “friendly” discussion.