Posted on 04/01/2020 8:27:11 PM PDT by nickcarraway
Xerox has dropped its bid to merge with HP, citing the current global health crisis related to the COVID-19 coronavirus, Xerox said. The news was previously reported by the Wall Street Journal.
“The current global health crisis and resulting macroeconomic and market turmoil caused by COVID-19 have created an environment that is not conducive to Xerox continuing to pursue an acquisition of HP Inc,” Xerox said in a statement on Tuesday.
Xerox will not nominate candidates to HP’s board, and has withdrawn its offer.
“We have a healthy cash position and balance sheet that enable us to navigate unanticipated challenges such as the global pandemic now before us, while preserving strategic optionality for the future,” HP said in a statement.
Xerox had previously led a hostile takeover bid of HP which would combine the two legendary tech giants. HP had rejected Xerox’s proposals. In February, Xerox raised its offer to $24 per share, which would value HP at about $34 billion.
However, since Xerox sweetened its bid, the COVID-19 coronavirus outbreak spread around the world and has created economic uncertainty, which led to Xerox ceasing its pursuit of the transaction. HP is a larger company and is more highly valued than Xerox.
HP announced last year that it planned to cut between 7,000 and 9,000 jobs by the end of 2022 to save $1 billion per year. In February, Xerox said that it had met with HP’s shareholders to discuss the potential “synergies” from a combination. In its statement about dropping its bid, Xerox said that HP used “delay tactics” while negotiating.
Activist investor Carl Icahn owns a 10.6% stake in Xerox and bought a $1.2 billion stake in HP last year. He was pushing for the merger.
HP shares were flat after dropping more than 1% after hours on the news, while Xerox shares barely moved after rising more than 5% during regular trading.
Killed by Corona
A dead company trying to buy a dying company?
past history takeovers: Xerxes Ends his Hostile Takeover Bid for Greece.
HP still makes decent (consumer / prosumer) level printers and scanners, but their support is hit and miss.
Who knew Xerox was still in business.
Wish someone would lynch the management of Netgear. Semi bullet proof routers, but their software bites and ZERO support.
Motorola, IBM and Kodac - Also exist, I don’t see any products but they must make something to still be around
Xerox almost died, but they got their crap back together and are producing solid product again. I’ve installed a few Xerox laser printers in client offices lately and they’ve worked out very well - often better than the comparable HP models. Better consumable pricing, too.
Motorola got eaten by the Chinese, IBM doesn’t build hardware for retail sale any more and sold their PC division off to the Chinese (Lenovo), Kodak is dead but their branding and IP got sold off to several companies, mostly Chinese. Mostly “Kodak” stuff is rebranded random Chinese crap now, just like most Polaroid branded stuff.
Two losers, quietly raped by Apple.
All we’ve ever used are Xeroxes, they make great printers!
Their WorkCentres are great office printers and we’ve used their 7500, 7800 and now are using their C9000.They are fantastic graphics machines.
Ed
They made some stinkers in the 2000s and their inkjet line was often garbage. They also had a huge quality drop in the late 2000s which led to them basically dropping off most peoples’ radar until recently.
Apple paid Xerox the price Xerox demanded for the tour and for licensing. It isn’t Apple’s fault that Xerox didn’t value it highly enough.
Not sure how you think Apple raped HP... HP told Woz they weren’t interested in his computer and told him to get lost.
I was just being dramatic.
I’d agree with that.
Netgear routers are pretty solid but since they changed how to manage them, I have had nothing but problems.
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