Xerox abandons tender off for HP, due to COVID-19 pandemic

Xerox Holdings Corp. is abandoning its effort to acquire much-larger rival HP Inc., citing the “macroeconomic and market turmoil” caused the COVID-19 pandemic. The company said it is withdrawing its $24-per-share tender offer to acquire HP and will also no longer seek to nominate  a slate of candidates to HP’s Board of Directors.

The company’s statement continued:

While it is disappointing to take this step, we are prioritizing the health, safety and well-being of our employees, customers, partners and other stakeholders, and our broader response to the pandemic, over and above all other considerations.

There remain compelling long-term financial and strategic benefits from combining Xerox and HP. The refusal of HP’s Board to meaningfully engage over many months and its continued delay tactics have proven to be a great disservice to HP stockholders, who have shown tremendous support for the transaction.

Xerox’s Board of Directors and management team are grateful for the significant backing we received from both Xerox and HP stockholders throughout this process. We thank the talented individuals who agreed to stand for election to the HP Board, making time in their busy schedules to take on this responsibility when HP’s existing Board did not. And finally, we thank the banks who agreed to finance this acquisition, who never wavered in their commitments, even during the market turmoil caused by COVID-19.