The M&A battle resumes this morning. Xerox has issued this statement:

“The HP board clearly adopted a poison pill because our offer is receiving overwhelming support from their shareholders,” says Xerox, “regardless of what the company and its army of advisors announce Monday, we believe HP shareholders appreciate that the value we could create by combining Xerox and HP outweighs – and is incremental to – anything HP could achieve on its own.”

”Despite the HP board’s intention to deny shareholders the chance to choose for themselves, we will press ahead with our previously announced tender offer and electing our slate of highly qualified director candidates,” says Xerox.

Xerox is now proposing a new lot of directors for the HP board.

Xerox’ bid for HP values the company at $35 billion and will be followed , says Xerox, by a tender offer for HP shares on March 2nd – going direct to the shareholders offering to buy their shares.

HP has queried how Xerox will pay for the deal – Xerox, has a market cap of $8.4 billion, while HP has a market cap of $32 billion..

Xerox’s financials have been declining. Its revenues fell by $1 billion last year y-o-y to $9.2 billion. When it has completed the on-going sale of its 25% stake in Fujifilm, Xerox will have $2.7 billion cash and debts of $4.3 billion.

In response, Xerox says it has raised $24 billion in financing from Mizuho, Citigroup and Bank of America to pay for the HP acquisition.

By: DocMemory
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