In the latest peacock strutting spat between HP and Xerox, HP again rejects Xerox’s takeover bid stating the funding does not reflect HP’s real value.
HP sent the “Dear John” letter to Xerox on 8 January in response to Xerox’s we got the money, lets talk, letter dated 6 January where Xerox outlined it had secured binding financing of $24 billion (€21.6 billion) for its takeover offer.
The “Dear John” letter from HP said “We reiterate that the HP Board of Directors’ focus is on driving sustainable long-term value for HP shareholders. Your letter dated January 6, 2020 regarding financing does not address the key issue – that Xerox’s proposal significantly undervalues HP – and is not a basis for discussion. The HP Board of Directors remains committed to advancing the best interests of all HP shareholders and to pursuing the most value-creating opportunities.”
Editor’s Opinion: This Dear John from HP message is more nuanced and focuses on the value of HP now and in the future. Unfortunately, HP doesn’t have a brilliant record on delivering shareholder value, whereas Xerox does…
So, the peacock strutting will continue, and we will keep you updated on the twists and turns as the deal closes or unfolds, and perhaps even a reverse deal as HP makes a bid for Xerox.
