Xerox considers $27 billion takeover offer for PC maker HP
BENGALURU – Xerox Holdings is considering making a cash-and-stock offer for personal computer maker HP at a premium to its market value of about $27 billion (R400 billion), the Wall Street Journal reported on Tuesday.
Xerox's board discussed the possibility on Tuesday, the newspaper said, citing people familiar with the matter.
There is no guarantee that Xerox will follow through with an offer or that one would succeed, it added.
Norwalk, Connecticut-based Xerox has also received an informal funding commitment from a major bank, the Journal said.
HP does not comment on rumors or speculation, a company spokeswoman told Reuters.
Xerox did not respond to a Reuters’ request for comment.
On Monday, Xerox had said it will sell its 25 percent stake in Fuji Xerox, its joint venture with Fujifilm Holdings, for $2.3 billion, after investor activism scuppered a deal involving the two companies.
Xerox had scrapped its $6.1 billion deal to merge with Fujifilm last year after lobbying by two of its main investors, Carl Icahn and Darwin Deason.
HP has been struggling with its printer business segment recently, with the division’s third-quarter revenue dropping 5 percent year on year.
In October, it had announced a plan to cut up to 9 000 jobs as part of a restructuring program aimed at cutting costs.
HP itself, once an icon of American technological innovation, is struggling in a plateauing PC market with the advent of smartphones.
The company, which appointed a new chief executive in October, aims to slash as much as 16 percent of its workforce as part of a restructuring meant to cut costs and boost sales growth amid its first change in top leadership in four years.Reuters