Xerox to take over HP?
HP confirms they have had talks with Xerox and have received the Xerox proposal.
HP issued the following statement yesterday (Nov 6th):
“As reviewed at HP’s most recent Securities Analyst Meeting, we have great confidence in our multi-year strategy and our ability to position the company for continued success in an evolving industry, particularly given the multiple levers available to drive value creation.
Against this backdrop, we have had conversations with Xerox Holdings Corporation (NYSE: XRX) from time to time about a potential business combination. We have considered, among other things, what would be required to merit a transaction. Most recently, we received a proposal transmitted yesterday.
We have a record of taking action if there is a better path forward and will continue to act with deliberation, discipline and an eye towards what is in the best interest of all our shareholders.”
David Connett, Partner at Connett & Unland GbR said of the potential deal: “Looking at the OEM sector you can’t but help see that the deal would bring the Xerox and HP platforms together giving huge economies for scale and deliver shareholder value.”
The HP average share price this year has been $19.83 (€17.89) and is trading today at ¢10 cents higher at $19.93 (€17.98). Whereas the Xerox average share price this year has been $31 (€27.96) and is trading today at $6.76 (€6.09) higher at $37.76 (€34.07) and ultimately it will be the shareholder value that determines if this deal succeeds.”
