Xerox increases HP offer price to $24 per share, to launch tender offer

February 10, 2020February 10, 2020 GaryPageau HP, Xerox

Xerox Holdings Corp. announced its intention to launch a tender offer on or around March 2, 2020, for all of the outstanding shares of common stock of HP Inc. at a price of $24.00 per share (about $34 billion), which will be comprised of $18.40 in cash and 0.149 Xerox shares for each HP share. The tender offer will not be subject to any conditions related to financing or to due diligence, the company said.

Since settling its distribution dispute with Fujifilm, Xerox has been pursuing a merger with HP; HP has repeatedly rebuffed Xerox’s overtures.

To make its case, Xerox has launched an information site promoting the benefits of the transaction to both companies’ stockholders at www.XplusHP.com.

In a statement, Xerox claims to have had discussions with “many of HP’s largest stockholders.”

These stockholders consistently state that they want the enhanced returns, improved growth prospects and best-in-class human capital that will result from a combination of Xerox and HP. The tender offer announced today will enable these stockholders to accept Xerox’s compelling offer despite HP’s consistent refusal to pursue the opportunity.

Xerox contends the $24.00 per share offer represents a 41% premium to “HP’s unaffected 30-day volume-weighted average trading price of $17.00.”

Written by GaryPageau

Gary Pageau is principal of InfoCircle LLC, continuing his marketing communications career. InfoCircle LLC is a marketing and communications consulting firm, specializing in business-to-business markets. For nearly 25 years, he was with PMA International, serving most recently as Publisher, Content Development and Strategic Initiatives. His primary responsibilities included overseeing the Association’s editorial department, marketing research unit, education and corporate relations department.