Xerox puts HP bid on hold due to COVID-19 concerns

Xerox Holdings Corp. today put a hold on takeover bid activities for HP Inc. due to the global COVID-19 pandemic.

“In light of the escalating COVID-19 pandemic, Xerox needs to prioritize the health and safety of its employees, customers, partners and affiliates over and above all other considerations, including its proposal to acquire HP,” said John Visentin, Xerox vice chairman and CEO, in a statement. “As we closely monitor reports from government and healthcare leaders across the globe and work with colleagues in the business community to minimize the spread and impact of the virus, we believe it is prudent to postpone releases of additional presentations, interviews with media and meetings with HP shareholders so we can focus our time and resources on protecting Xerox’s various stakeholders from the pandemic.”

Visentin added Xerox does not consider the precipitous market decline since the date of its initial offer or the halted stock-market trading that occurred on March 10, 2020, and on March 12, 2020, as inhibitors to its ambitions. Xerox’s tender offer is to acquire all outstanding shares of HP for $24.00 per share, comprising $18.40 in cash and 0.149 Xerox shares for each HP share.

Earlier in the week, Xerox filed a preliminary proxy statement with the SEC to seek approval from its shareholders related to the issuance of Xerox shares in connection with its offer to acquire HP.

Xerox expects to call a an as-yet unscheduled special meeting at which Xerox shareholders will consider proposals to amend the Xerox charter to increase the number of authorized shares of Xerox common stock and to approve, for purposes of New York Stock Exchange rules, the issuance of Xerox shares in connection with a combination with HP.