|Bid||22.44 x 900|
|Ask||22.87 x 3000|
|Day's range||22.24 - 22.63|
|52-week range||15.93 - 24.09|
|Beta (5Y monthly)||1.55|
|PE ratio (TTM)||10.84|
|Earnings date||23 Feb 2020|
|Forward dividend & yield||0.70 (3.17%)|
|Ex-dividend date||09 Mar 2020|
|1y target est||21.09|
HP's (HPQ) first-quarter fiscal 2020 performance is likely to have benefited from increasing demand in the commercial PC market. However, weakness in the Printing business might have been a headwind.
HP (HPQ) doesn't possess the right combination of the two key ingredients for a likely earnings beat in its upcoming report. Get prepared with the key expectations.
The charm offensive comes after Xerox raised its cash-and-stock bid for HP last week by $2 to $24 per share ahead of a tender offer it plans to launch in early March. It is also asking HP shareholders to replace HP's board directors with Xerox's nominees at the company's annual shareholder meeting later this year. It told investors last week it wants them to have "full information" on the company before responding publicly to Xerox.
(Bloomberg Opinion) -- As a general rule, I’m not a big fan of corporations being guided by corporate raiders, a.k.a. shareholder activists. They tend to rely on financial engineering to boost the stock price; cut back on “expenses” like customer service and research and development; and run for the exits when they see the roof caving in.But Xerox Holdings Corp. may be the exception. The company’s biggest shareholder is the activist of activists, 83-year-old Carl Icahn, who controls around 11% of the stock. The chairman, Keith Cozza, is the chief executive officer of Icahn Enterprises LP, Icahn’s holding company. One board member, Nicholas Graziano, is a portfolio manager with Icahn Capital LP, Icahn’s hedge fund. Another is John Christodoro, a former managing partner at Icahn Capital.And John Visentin, the Xerox CEO, while not an Icahn guy the way the other three are, clearly sees eye to eye with the big dog. He got the job in no small part because he agreed with Icahn that Xerox’s planned merger with Fujifilm Holdings Corp. was a bad idea. When Xerox pulled out of the deal in May 2018 — and agreed to put Icahn’s allies on the board — Visentin, who had backed away from negotiating with the previous board, was installed as the new boss.It’s hardly news that Icahn is an aggressive investor. What is news is that under Visentin, Xerox — lumbering, old-school Xerox — has become just as aggressive. He has managed to breathe new life into the 113-year-old printer company. He’s doing the share buyback thing, but he’s also streamlined the company, increased free cash flow and consistently beat the Street’s expectations even as revenue has continued to decrease gradually. According to Bloomberg data, the share price rose 87% last year, a number not seen in many years.Of course, the most visible manifestation of this new aggressiveness is Xerox’s effort to buy its much larger rival HP Inc. The attempt, which became public in November — soon after an unimpressive HP analysts’ meeting — heated up on Monday when Xerox raised its offer to $24 a share from $22, bringing its bid to $35 billion. Talk about the minnow trying to swallow the whale. Xerox has $9 billion in revenue. HP has $58 billion. Xerox has a market cap of $8 billion. HP has a market cap of $31 billion. Not all that long ago, an audacious move like this by Xerox would have been unthinkable.And HP? Nearly eight decades ago, it was the original Silicon Valley startup, the avatar of the tech industry. But by the 1980s, it had congealed in its own bureaucracy, and a kind of paralysis set in, compounded by some well-publicized gaffes. In 2015, in an effort to create a more nimble culture, the board split the company in two. Hewlett Packard Enterprise got the software and services side of the company, while HP kept printers and laptops. Last year, HP’s stock was down 21% before Xerox announced its intentions in early November.The essential problem is that the printer business is in a slow but steady decline — and like newspapers, cable television and many other businesses, that decline is likely irreversible. For HP, the decline is made worse because it makes most of its money in the printer division by selling expensive ink cartridges — and many consumers buy less expensive cartridges made by competitors.At the analyst meeting in October, HP announced that it would eliminate up to 9,000 jobs by 2022, saving $1 billion, and would turn to a subscription model to revive its flagging cartridge business. Analysts were unimpressed, and in the aftermath of the meeting, the stock dropped 9.4%In Icahn-like fashion, this was exactly the moment Visentin pounced. Xerox, of course, has the same problem as HP — its printer business is declining — and it doesn’t have other businesses, like laptops, to soften the blow. The shrinking of the printer business has convinced Visentin that industry consolidation is inevitable; in a statement at the time of the original offer, Xerox said that “our industry is overdue for consolidation, and those who move first will have a distinct advantage.”In the materials it has provided to HP shareholders, Xerox claims that a merger will have synergies worth $2 billion and will generate nearly $6 billion in free cash flow. And Visentin plans to use that money less to manage the decline than to buy smaller, more innovative companies while investing in research and development that will allow the company to chart a new course that will generate growth and profits.There is no way of knowing whether Visentin can pull this off if he lands HP, though his track record so far at Xerox should give shareholders hope. Indeed, he is so clearly right about the first-mover advantage of consolidation that what HP really ought to do is turn around and make a tender offer for Xerox, which would require a lot less debt. And then it should install Visentin as CEO.Instead, HP has reverted to form, contending that the Xerox bid is inadequate, that its financing is shaky and generally avoiding coming to grips with reality. But sometime soon, HP will have to set the date for its annual meeting, and at that point its shareholders will have a say in the matter. Xerox, ever the aggressor, is proposing a slate of directors to replace HP’s current board.I know one big shareholder who will vote for the Xerox slate. A few months ago, Icahn bought 4% of HP’s stock. HP’s odds of going it alone much longer aren’t good at all.To contact the author of this story: Joe Nocera at email@example.comTo contact the editor responsible for this story: Daniel Niemi at firstname.lastname@example.orgThis column does not necessarily reflect the opinion of Bloomberg LP and its owners.Joe Nocera is a Bloomberg Opinion columnist covering business. He has written business columns for Esquire, GQ and the New York Times, and is the former editorial director of Fortune. His latest project is the Bloomberg-Wondery podcast "The Shrink Next Door."For more articles like this, please visit us at bloomberg.com/opinionSubscribe now to stay ahead with the most trusted business news source.©2020 Bloomberg L.P.
(Bloomberg) -- HP Inc. said it will respond to Xerox Holdings Corp.’s planned tender offer on Feb. 24, when the company reports earnings, again promising shareholders a path to boost the personal-computer maker’s value.“HP will share additional information about its plan to drive sustainable long-term value for its shareholders, including through the execution of the company’s multi-year strategic and financial plan and the deployment of its strong balance sheet,” the Palo Alto, California-based company said Tuesday in a statement.Xerox said Monday it will launch a tender offer “on or around March 2” with a bid of $24 per share in cash and stock, a $2 per share increase from an unsolicited takeover offer to HP’s board in November. For each HP share, a holder would get $18.40 in cash and 0.149 Xerox shares. The offer won’t be subject to any conditions related to financing or due diligence, Xerox said Monday. The printer maker has already begun a proxy battle for control of HP, nominating 11 directors to replace its rival’s board.Analysts project that HP will report profit, excluding some expenses, of 55 cents per share on revenue of $14.6 billion in the fiscal first quarter, according to data compiled by Bloomberg. That would mean a 1% reduction in sales compared with a year earlier, reflecting softer demand for the company’s ink supplies as consumers and businesses print less.Xerox also has struggled to cope with those changing market tastes, and last year announced plans to cut $640 million in expenses. Annual revenue declined 8% to $9.1 billion in 2019, with analysts projecting another 5% decrease this year.HP has said it has many routes to create value for shareholders that aren’t dependent on a combination with Xerox. Chief Executive Officer Enrique Lores, who has worked at the company for more than three decades, is still new to HP’s top job. Lores said he wants to make printing services, 3-D printing and high-end computers a larger part of HP’s business, and would oversee as much as a 16% reduction in the company’s workforce in a bid to cut costs. Xerox CEO John Visentin has criticized this plan as a piecemeal approach that won’t be as beneficial to HP as a combination.(Corrects date for the planned tender offer in the third paragraph.)To contact the reporter on this story: Nico Grant in San Francisco at email@example.comTo contact the editors responsible for this story: Jillian Ward at firstname.lastname@example.org, Andrew PollackFor more articles like this, please visit us at bloomberg.comSubscribe now to stay ahead with the most trusted business news source.©2020 Bloomberg L.P.
(Bloomberg Opinion) -- In the lumbering takeover battle for HP Inc., Carl Icahn-backed Xerox Holdings Corp. had been wielding plenty of stick, so it was about time for some carrot. What came was more of a crudite, but it might just be the appetizer that HP needs.In the three months since Xerox’s initial bid, Icahn, who’s already the biggest investor in Xerox, took a 4% stake in HP. Xerox started a proxy fight for control of HP’s board and lobbied shareholders directly for support. On Monday, it finally improved the terms of the bid, increasing its offer to $24 a share from the initial $22.The bump may not be enough to get a deal over the line, but it ought to at least give HP Chief Executive Officer Enrique Lores good reason to start formal talks. So far, HP has rejected the approaches and declined to negotiate. Should he do so now, he does so in the knowledge that he still has a stronger hand than his Xerox counterpart, John Visentin.The extra $2 a share translates to a price increase of a little more than $3 billion, valuing HP at $35 billion excluding debt. And debt is a sticking point. As it stands, the Palo Alto, California-based company has very little of it: Net debt represents just 0.1 times earnings before interest, taxes, depreciation and amortization. To fund the acquisition, Xerox would most likely increase debt at the combined entity to more than four times Ebitda, essentially using up HP’s own debt capacity. HP could just as readily buy back its own shares and end up with a lower debt-to-Ebitda ratio than it would after a Xerox deal.That’s why the higher offer looks like Xerox’s best effort to get HP just to engage. Is there an industrial logic to the two firms tying up? Yes. The printer market is in structural decline, so combining resources makes sense, assuming regulatory approval isn’t an issue, which is a question mark.But if the argument is one of industrial logic, is it in the interest of the companies’ investors, which will both own a stake in the combined entity, to emerge with a significantly bigger debt pile to service? Probably not. Creating additional revenue, achieving cost synergies and maintaining investment-grade ratings could be challenging, according to Bloomberg Intelligence analyst Robert Schiffman.It has always looked as if Xerox was just as interested in being acquired as it was being the acquirer, as I wrote in November. The fact that HP shareholders would own 49.95% of the combined entity under the latest offer, up from 48.9 % in the initial bid, seems to indicate which way the conversation is likely to head should serious negotiations begin. Lores will now find it easier to fight for more prominence for HP and its team and try to avoid the unpleasant distraction of a proxy fight.As it outlined the strategic logic for the deal, Xerox might have made its life more difficult by identifying about $2 billion in savings from combining operations. If that’s true, then it might afford more than the $24 a share on the table based on the net present value of those savings. But compared with HP’s undisturbed share price before the approach was first reported, Xerox is now offering a premium of more than 40%. That should be more than enough to move things along, even if Lores still has good reason to walk away.To contact the author of this story: Alex Webb at email@example.comTo contact the editor responsible for this story: Daniel Niemi at firstname.lastname@example.orgThis column does not necessarily reflect the opinion of Bloomberg LP and its owners.Alex Webb is a Bloomberg Opinion columnist covering Europe's technology, media and communications industries. He previously covered Apple and other technology companies for Bloomberg News in San Francisco.For more articles like this, please visit us at bloomberg.com/opinionSubscribe now to stay ahead with the most trusted business news source.©2020 Bloomberg L.P.
(Bloomberg) -- Xerox Holdings Corp. increased its offer price for HP Inc. to $24 a share, boosting the bid by $2 a share in an effort to win control of the personal computer maker which has previously refused to engage in takeover talks because it said the offer was too low.Xerox said in a statement Monday it plans to launch a tender offer “on or around March 2” comprised of $18.40 in cash and 0.149 Xerox shares for each HP share. The offer won’t be subject to any conditions related to financing or due diligence. The offer represents a 41% premium to HP’s 30-day volume weighted average trading price of $17.00, Xerox said.The iconic, but struggling, printer maker said last month it planned to nominate 11 directors to replace the HP board in an effort to push the merger through.HP’s shareholders “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,” Xerox said in the statement. The two hardware giants have withered in a world increasingly driven by software, and Xerox has argued the tie-up would revive both companies and unlock about $2 billion in synergies.A representative for HP wasn’t immediately available for comment. HP shares rose 4.5% to $22.71 at 9:31 a.m. in New York Monday. They’re down 1.3% in the past 12 months.HP has said in the past that it has many routes it could pursue to create value that aren’t dependent on a combination with Xerox, it said.Activist shareholder Carl Icahn, who owns about 11% of Xerox and has a 4.3% stake in HP, has pushed for the tie-up. The billionaire has considerable influence over Xerox because he is its largest shareholder. He also played a role in appointing Xerox’s CEO, who was a former consultant to Icahn, and has ties to members of the board, including its chairman, who is also the chief executive officer of Icahn Enterprises.(Updates shares in fifth paragraph. A previous version of this story corrected the cash portion of the offer)To contact the reporter on this story: Molly Schuetz in New York at email@example.comTo contact the editors responsible for this story: Molly Schuetz at firstname.lastname@example.org, Timothy Annett, Tony RobinsonFor more articles like this, please visit us at bloomberg.comSubscribe now to stay ahead with the most trusted business news source.©2020 Bloomberg L.P.
Xerox said its latest offer comprises $18.40 in cash and 0.149 Xerox shares for each HP share — valuing the company at about $35 billion — and that it plans to launch a tender offer on or around March 2. HP shares rose nearly 3% to $22.31, while Xerox was up about 1%. Xerox said last month it planned to nominate 11 independent candidates to HP's board and that it had secured $24 billion in financing for the offer.
(Bloomberg) -- Autonomy founder Mike Lynch, who’s fighting U.S. charges that he orchestrated a massive fraud at his software firm, was arrested in London as authorities pushed forward with his extradition.Lynch submitted himself for arrest and was granted conditional bail after being ordered to put up a 10 million-pound ($13 million) security, Westminster Magistrates Court staff said Wednesday. The U.S. Department of Justice alleges that Lynch made false statements to make his software firm more attractive to Hewlett-Packard Co., which acquired Autonomy for $11 billion in 2011. It wrote down the value by $8.8 billion just a year later.“Dr. Lynch vigorously rejects all the allegations against him and is determined to continue to fight these charges,” Lynch’s lawyers said in a statement. He is next due in court on March 10 for a case management hearing.While facing the U.S. criminal charges of wire and securities fraud, Lynch has separately fought a $5 billion civil case against HP in London, which finished last month with the judge set to consider his verdict.“The U.S. DOJ should not have commenced extradition proceedings prior to the judgment of the English High Court,” the attorneys, Chris Morvillo and Reid Weingarten, said.The U.S.-U.K. extradition agreement has come under scrutiny recently with the American government refusing to send back a diplomat’s wife who allegedly killed a motorcycle rider while driving on the wrong side of the road near an American military site.British lawmakers including David Davis said last month that the agreement is unequal and that the U.K. government should delay the extradition until the judgment in Lynch’s London case was known.The 10-month civil trial wrapped up with Lynch saying that HP spent tens of millions of dollars attempting to prove fraud but failed to tie the founder to any wrongdoing. His attorney argued that HP brought the case “out of buyer’s remorse.”Lynch will fight the extradition based on the fact that the alleged offenses could have been tried in the U.K., Lynch’s lawyer Alex Bailin said in court.British prosecutors chose not to pursue their own investigation.“These matters concern a British citizen, U.K.-based conduct, a U.K. listed Plc, culminating in a U.K. civil trial in which judgment is pending -- these matters unquestionably belong here in the U.K.,” Bailin said. “The forum bar exists to provide real protection against this interventionist type of action.”(Updates with Lynch granted 10 million-pound bail in second paragraph.)To contact the reporter on this story: Jonathan Browning in London at email@example.comTo contact the editor responsible for this story: Anthony Aarons at firstname.lastname@example.orgFor more articles like this, please visit us at bloomberg.comSubscribe now to stay ahead with the most trusted business news source.©2020 Bloomberg L.P.
(Bloomberg) -- Hon Hai Precision Industry Co. cut its 2020 revenue outlook after deciding to impose strict quarantines at its main iPhone-making base, a measure to guard against the coronavirus outbreak that may hurt Apple Inc.Hon Hai, which makes the vast majority of the world’s iPhones from the central Chinese city of Zhengzhou, officially resumes production Feb. 10 after an extended Lunar New Year break. But the company said in a statement that workers returning from outside Henan province -- site of its main factory -- will be sequestered for 14 days. Any staff reporting to work who reside within the province itself will be isolated for 7 days.The lost production prompted Hon Hai, known also as Foxconn, to slash its forecast for revenue growth in 2020. The company is now projecting a sales increase of 1% to 3% this year, Chairman Young Liu told Bloomberg News in a text message. That’s down from a Jan. 22 forecast of 3% to 5%, before the epidemic spread around the globe, and lags the 5.4% average of analysts’ projections.The contagion is expected to disrupt Apple’s carefully calibrated production chain centered on China, while dampening consumer demand and overall economic growth. As China’s largest private employer and a key partner to many of the world’s most recognizable consumer brands, Hon Hai has become a high-profile symbol of how the outbreak could disrupt the world’s supply of made-in-China electronics.“Given current market conditions, we are lowering to 1%-3%,” Liu replied when asked about whether Hon Hai will cut its original sales growth forecast for this year.Read more: Apple Suppliers Aim to Resume Full China Production Feb. 10Hon Hai, which makes products for companies from HP Inc. to Sony Corp., said Tuesday it still expects to be able to restart facilities throughout China on schedule. Key suppliers with major Chinese operations such as Quanta Computer Inc., Inventec Corp. and LG Display Co. have also said they would go back to work next week.But while Chinese officials and companies have targeted Feb. 10 as the date to resume work across much of the country, doubts about the timing have grown in recent days as the virus death toll rises, workers find themselves stuck in municipal lockdowns and the transport of people and goods has been hampered.What Bloomberg Intelligence SaysHon Hai’s lower 2020 sales growth outlook of 1-3% vs. 3-5% just a week ago likely reflects the severity of disruption to its operations from the coronavirus outbreak, in our view. The NT$111 billion reduction in sales at the midpoint of the range vs. the prior midpoint is equivalent to one week of revenue, accounting for the extended factory shutdown imposed by the Chinese government.\- Matthew Kanterman, analystClick here for the research.Hong Kong to Quarantine Travelers; Almost 500 Dead: Virus UpdateApple in January issued a wider-than-usual sales forecast to reflect what Chief Executive Officer Tim Cook called “uncertainty” caused by a virus outbreak in one of its most important markets.Smartphone sales -- particularly in China -- are expected to take a big hit from the coronavirus outbreak after government-imposed containment measures snarled logistics and emptied out stores. Hon Hai’s Hong Kong-listed unit FIH Mobile Ltd. makes phones for Xiaomi Corp. and Huawei Technologies Co.Research firms vary in their estimates of how big the shipments drop-off will be, reflecting the still-developing nature of the virus outbreak -- but they agree it will hurt. Strategy Analytics forecasts a 32% decline in Chinese shipments in the first quarter, to 60 million from roughly 89 million shipments a year earlier. Canalys, starting from a similar estimate for 2019, scythes its expectations down to 42.5 million shipments.Hon Hai’s shares stood largely unchanged Wednesday after having slid about 11% since a broader Asian market selloff began in mid-January.Read more: Virus Outbreak May Halve China Phone Shipments in First Quarter\--With assistance from Edwin Chan.To contact the reporters on this story: Debby Wu in Taipei at email@example.com;Mark Gurman in Los Angeles at firstname.lastname@example.orgTo contact the editors responsible for this story: Peter Elstrom at email@example.com, Colum Murphy, Vlad SavovFor more articles like this, please visit us at bloomberg.comSubscribe now to stay ahead with the most trusted business news source.©2020 Bloomberg L.P.
Xerox, which has been facing a slowdown in demand as businesses cut down on printing their paperwork, has laid out a three-year cost-cutting plan under Chief Executive Officer John Visentin, a nominee of activist investor Carl Icahn. The quarterly results also benefited from a gain of over $500 million related to the sale of stake in Fuji Xerox and other assets. Xerox's total revenue fell to $2.44 billion in the fourth quarter from $2.50 billion a year earlier.
(Bloomberg) -- Xerox Holdings Corp. said it intends to nominate 11 directors to replace the board of HP Inc. after the personal-computer maker refused to engage in takeover talks, according to a statement Thursday.The iconic printer maker hasn’t increased its $22-a-share takeover offer after HP rejected its proposal, which it argues undervalues the company. Instead, Xerox will seek to replace HP’s entire board through a proxy fight to push the merger through.The nominees include former senior executives from dozens of companies including Aetna Inc., United Airlines Holdings Inc. and Novartis AG.“HP shareholders have told us they believe our acquisition proposal will bring tremendous value, which is why we lined up $24 billion in binding financing commitments and a slate of highly qualified director candidates,” said John Visentin, vice chairman and chief executive officer of Xerox.Xerox filed its slate ahead of a Friday deadline for board nominations. The move could potentially be a precursor to Xerox taking its offer directly to shareholders through a tender offer at the current offer price or a premium if HP continues to rebuff its efforts, according to people familiar with the matter. No decision has been made on whether to pursue a tender offer, the price it would be put forth at, or when it would do so, the people said, asking not to be identified because the matter is private.The push to replace the board marks an escalation of the simmering tensions between the two hardware giants that have withered in a world increasingly driven by software. Xerox has argued the tie-up would revive both companies and unlock about $2 billion in synergies.“These nominations are a self-serving tactic by Xerox to advance its proposal, which significantly undervalues HP and creates meaningful risk to the detriment of HP shareholders,” HP said in a statement.HP said that it would review Xerox’s nominees and respond in due course. It also said that it was committed to serving the best interests of all shareholders, and that it had many avenues that it could pursue to create value. Those efforts are not dependent on a combination with Xerox, it said.Activist shareholder Carl Icahn, who owns about 11% of Xerox and has a 4.3% stake in HP, has pushed for the tie-up.HP said Thursday it believed Xerox’s proposal to acquire HP was being driven by Icahn. The billionaire has considerable influence over Xerox because he is its largest shareholder, the role he played in appointing Xerox’s CEO, who was a former consultant to Icahn, and the ties he has to members of the board, including its chairman, who is also the chief executive officer of Icahn Enterprises, HP said.“Due to Mr. Icahn’s ownership position, he would disproportionately benefit from an acquisition of HP by Xerox at a price that undervalues HP,” the company said, adding that his interests were not aligned with those of other HP shareholders.A representative for Icahn wasn't immediately available for comment.HP’s board currently has 12 members. Dion Weisler, the former chief executive officer of the company, has said he would step down at the next annual general meeting, which the company said would reduce the board size to 11. Its last annual meeting was on April 23.HP in November rebuffed an unsolicited, cash-and-stock offer from Xerox, citing concerns about the financial health of its smaller rival, which has experienced declining annual revenue since 2012.HP’s board said it was open to exploring a merger, but believed the offer undervalued the company.Xerox announced Jan. 6 that it had arranged a $24 billion loan with a group of banks to finance the takeover. HP and its advisers had questioned Xerox’s ability to raise the money for the deal.Following the financing announcement, HP said it believed the offer still undervalued the company.Xerox’s director nominees are:Betsy Atkins, CEO of Baja Corp.George Bickerstaff, co-founder and managing director of M.M. Dillon & Co.Carolyn Byrd, CEO of GlobalTech Financial.Jeannie Diefenderfer, who spent 28 years at Verizon.Kim Fennebresque, who was CEO of Cowen Group for nine years.Carol Flaton, who has served as a managing director at AlixPartners.Matthew Hart, who most recently served as president and chief operating officer of Hilton Hotels until the buyout of Hilton by Blackstone in 2007.Fred Hochberg, who was most recently the chairman and president of the Export-Import Bank of the United States during the Obama administration.Jacob Katz, who was chairman of Grant Thornton.Nichelle Maynard-Elliott, who most recently served as executive director of mergers & acquisitions for Praxair Inc.Thomas Sabatino, Jr. who most recently served as executive vice president and general counsel of Aetna Inc.Citigroup Inc. is acting as Xerox’s financial advisor, and King & Spalding LLP is providing legal counsel to Xerox. Willkie Farr & Gallagher LLP is providing legal counsel to Xerox’s independent directors.(Updates with additional company comments starting in paragraph eight)To contact the reporter on this story: Scott Deveau in New York at firstname.lastname@example.orgTo contact the editors responsible for this story: Liana Baker at email@example.com, Matthew Monks, Molly SchuetzFor more articles like this, please visit us at bloomberg.comSubscribe now to stay ahead with the most trusted business news source.©2020 Bloomberg L.P.
"HP shareholders have told us they believe our acquisition proposal will bring tremendous value, which is why we lined up $24 billion in binding financing commitments and a slate of highly qualified director candidates," John Visentin, Xerox's CEO, said on Thursday. HP, which has 12 board members, responded to Xerox's decision to nominate candidates by again saying the bid undervalues the company. The company added that the move to nominate members to its board was being "driven" by activist investor Carl Icahn, who has a 4.2% stake in HP and a 10.9% stake in Xerox.