HP's board of directors rejects the Xerox takeover bid. This was announced by the company on November 17, 2019. It is concluded that the proposal of Xerox "HP is greatly underestimated"It is said in a letter to Xerox CEO Johnny Vicentin.
"We are open to exploring whether a potential combination with Xerox could add value to HP's shareholders." According to HP "To clarify basic questions"as the June 2018 revenue drop raises important issues regarding business performance and prospects.
"By embracing Xerox management and accessing sensitive Xerox information, we believe we can quickly assess the merits of a potential transaction."
Billionaire Carl Icahn backs Xerox acquisition of HP Inc. personal computers and printer maker Ican said he owns 4.24 per cent of the $ 1.2 billion PE company. In addition, the 83-year-old owns 10.6 percent of Xerox shares.
Ican argues that the combination of the two printer manufacturers could bring big profits to investors. The merger would have "$ 2 billion savings potential",
Xerox, based in Norwalk, Connecticut, produces mainly large printers and copiers. At HP, all printing and computer products work under the old company logo. Based in Palo Alto, CA, HP primarily offers smaller printers and printer enhancements as well as 3D printers and is one of the largest PC makers in the world. The company posted sales of approximately $ 58 billion in the past fiscal year, ending in October 2018.