|Bid||18.51 x 900|
|Ask||0.00 x 900|
|Day's range||17.63 - 19.58|
|52-week range||15.01 - 39.47|
|Beta (5Y monthly)||1.72|
|PE ratio (TTM)||3.26|
|Earnings date||21 Apr 2020 - 26 Apr 2020|
|Forward dividend & yield||1.00 (5.28%)|
|Ex-dividend date||26 Mar 2020|
|1y target est||36.33|
Xerox announced today that it would be dropping its hostile takeover bid of HP. The drama began last fall with a flurry of increasingly angry letters between the two companies, and confrontational actions from Xerox, including an attempt to take over the HP board that had rejected its takeover overtures. All that came crashing to the ground today when Xerox officially announced it was backing down amid worldwide economic uncertainty related to the COVID-19 pandemic.
(Bloomberg Opinion) -- It’s finally over.Xerox Holdings Corp. announced late Tuesday that it is abandoning its tender offer to acquire HP Inc., citing the global health crisis from Covid-19 and the ensuing difficult market environment. The maker of photocopiers also called off its effort to enter into a proxy fight to replace HP’s board. It marks the end of a dramatic back-and-forth struggle that began last November, when Xerox began its pursuit of HP, the second-largest computer maker. HP has repeatedly rejected Xerox’s overtures, including its most recent offer, valued at about $35 billion. But while Xerox is blaming coronavirus, its attempt to take over a company more than three times its size never made much sense in the first place. Not only would it require tens of billions in inherently risky debt financing — the whole strategy of buying a secularly challenged business and relying primarily on cost savings was never a winner.In February, for example, HP reported a 7% decline in its printer revenue and a 10% drop in printer-hardware unit sales for its fiscal first quarter ended in January. Cost cutting is not going to save this troubled business. Xerox wasn’t much better when it posted a sales decline for its December quarter.Both companies should instead focus on figuring out new growth strategies for their respective businesses, instead of being distracted by M&A and financial engineering.Adding two dinosaurs together was never going to magically make a new tech behemoth.This column does not necessarily reflect the opinion of Bloomberg LP and its owners.Tae Kim is a Bloomberg Opinion columnist covering technology. He previously covered technology for Barron's, following an earlier career as an equity analyst.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. ended its hostile takeover bid for HP Inc. because of uncertainty stemming from the Covid-19 pandemic, marking a blow to the photocopier company’s efforts to stimulate future growth.The Norwalk, Connecticut-based company will withdraw its tender offer to HP shareholders and stop an effort to win a slate of board directors. Xerox believes the underlying logic behind a combination remains sound and may revisit the idea in the future, said a person familiar with the issue who asked not to be identified discussing company deliberations.“The current global health crisis and resulting macroeconomic and market turmoil caused by Covid-19 have created an environment that is not conducive to Xerox continuing to pursue an acquisition of HP Inc.,” Xerox said Tuesday in a statement. “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.”HP, the world’s second-largest computer maker, has repeatedly rebuffed Xerox’s cash-and-stock offers, most recently valued at an estimated $35 billion. In the most recent proposal, an HP holder would have received $18.40 in cash and 0.149 Xerox shares. The offer was set to expire April 21.“We remain firmly committed to driving value for HP shareholders,” the Palo Alto, California-based company said in a statement. “We have a healthy cash position and balance sheet that enable us to navigate unanticipated challenges such as the global pandemic now before us, while preserving strategic optionality for the future.”HP had earlier implored shareholders to reject the tender offer and Xerox board nominees, suggesting that a debt-enabled combination would be “disastrous” for the hardware giant in the current economic environment.HP’s shares fell 1.5% in extended trading after closing at $17.36. Xerox’s stock was little-changed after ending Tuesday’s session at $18.94. The news of Xerox’s decision was reported earlier by the Wall Street Journal.Xerox, which has reported falling revenue, had hitched its future to an acquisition. The company expected that combining the companies would yield $2 billion in cost savings and more than $1 billion in additional revenue growth. Both hardware companies invented technologies still in use by consumers and office workers, and have struggled in a world increasingly driven by software.HP’s board characterized Xerox’s offers as undervaluing the company, and said it will return $16 billion to shareholders in an effort to show HP can stand on its own.Xerox criticized HP for failing to enter into substantive talks that could have led to a merger.“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 said.(Updates with comment from HP in the fifth paragraph.)For 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's decision came after it said earlier this month it would postpone meetings with HP shareholders to focus on coping with the coronavirus pandemic. It represents a victory for HP CEO Enrique Lores, who faced a takeover battle as soon as he took over the reins of the Palo Alto, California-based company in November, and a defeat for Xerox CEO John Visentin, a former Hewlett-Packard and IBM Corp executive with ties to the private equity industry who took over as Xerox CEO in 2018. It is also a blow for billionaire investor Carl Icahn, who owns big stakes in both companies and had pushed for their merger.
Xerox is withdrawing tender offer to acquire HP and will no longer seek to nominate slate of highly qualified candidates to HP’s Board of Directors.
Investing.com - Xerox will reportedly pull its bid to buy rival HP amid concerns about its financial ability to pull off the deal in the wake of the coronavirus-led economic disruptions.
HP CEO Enrique Lores tells Yahoo Finance demand for PCs and printers have been strong as people work from home during the coronavirus pandemic.
(Bloomberg) -- HP Inc. again asked shareholders to reject Xerox Holdings Corp.’s takeover offer, saying that a complex merger could be “disastrous” for the personal computer giant amid economic shocks stemming from the Covid-19 pandemic.“Under these circumstances and consistent with our fiduciary duties, we believe that we should not divert valuable time, attention and resources to a dialogue with Xerox about its proposed transaction,” the Palo Alto, California-based company said Wednesday in a letter to investors. “Since Xerox launched its unsolicited exchange offer and nominated directors, the global, social, economic and financial environments have changed radically. Despite this, Xerox continues to advance its tender offer and its proposed slate of directors in an effort to force a combination.”Xerox has sought to acquire HP, the world’s second-largest personal computer maker, for $24 a share in cash and stock, a deal valued at roughly $35 billion. Xerox said this month it would pause its pursuit of HP during the pandemic, but the company planned to resume the effort when the situation improved, Bloomberg News reported. Xerox has launched a tender offer for outstanding shares of HP and also nominated a slate of directors to replace the company’s board.For 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's (XRX) bottom line is benefiting from "Project Own It," an initiative aimed at increasing productivity and efficiency, reducing costs, and realigning business to changing market conditions.
The U.S. printer maker added that it does not consider the decline in HP shares since the date of its offer as a broader sell-off could affect its bid. "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," Xerox's Chief Executive Officer John Visentin said in a statement on Friday. Earlier this month, HP rejected Xerox's raised takeover bid of about $35 billion (27.8 billion pounds), saying it undervalued the personal computer maker.
(Bloomberg) -- Xerox Holdings Corp. said it will pause its public pursuit of HP Inc. amid the outbreak of the coronavirus.“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,” Xerox Chief Executive Officer John Visentin said in a statement Friday, adding that the company continues to monitor the situation closely.Norwalk, Connecticut-based Xerox intends to continue its pursuit of HP when the pandemic stabilizes, according to a person familiar with the matter, who asked to not be identified because the matter isn’t public. A representative for HP was not immediately available for comment.Xerox’s shares have fallen about 33% over the past month through Thursday’s close while HP’s have fallen about 18%. Xerox rose 3.7% Friday to $24.78 per share at of 9:43 a.m. in New York. HP’s shares jumped 3% to $18.10 at the same time as U.S. stocks rebounded from their worst day since 1987.Xerox offered to acquire the much larger HP for $24 a share in cash and stock, or roughly $35 billion, in a hostile takeover. It has also nominated a slate of directors to replace the company’s board. HP has repeatedly rebuffed its efforts, arguing the takeover price undervalues the company and has raised other issues with the proposal.The printer maker said it would be forced to take a break from its hostile takeover and proxy fight in the wake of the pandemic.“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 said.Dealmaking across the world is being hampered by the spread of the coronavirus. The volume of M&A announced through the end of February was down 27% to $419 billion, the slowest start to a year since 2013, according to data compiled by Bloomberg.(Updates share prices in fourth paragraph)To contact the reporter on this story: Scott Deveau in New York at email@example.comTo contact the editors responsible for this story: Liana Baker at firstname.lastname@example.org, Matthew MonksFor 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.
In light of the escalating COVID-19 pandemic, Xerox needs to prioritize the health and safety of its employees, customers, partners and affiliates.
Xerox Holdings Corporation announced that it is filing a preliminary proxy statement with the SEC to seek approvals from its shareholders.
HP's (HPQ) board unanimously rejects another hostile takeover bid from Xerox (XRX), claiming the offer to be undervalued for the world's leading personal system maker.
Xerox Holdings Corporation announced that it is filing a preliminary proxy statement with the SEC to replace the board of directors of HP Inc.
(Bloomberg) -- Xerox Holdings Corp. plans to expand its slate of nominees to replace the board of HP Inc. to 12 directors with the addition of former Alliant Energy Corp. Chief Executive Officer Erroll B. Davis Jr., according to people familiar with the matter.His nomination is expected to come as early as Monday, said the people, asking not to be identified because the matter is private. Davis has served on the boards of several high-profile companies, including Union Pacific Corp., General Motors Co., PPG Industries Inc. and BP Plc.Representatives for Xerox and HP declined to comment. HP had previously said it believed Xerox’s nominations are a “self-serving tactic by Xerox to advance its proposal, that significantly undervalues HP and creates meaningful risk to the detriment of HP shareholders.”The move comes as Xerox and HP executives are expected to meet this week to discuss HP’s ongoing concerns about the tie-up between the companies.Davis’s nomination follows a decision by HP to temporarily expand its board to 13 members with the addition of NXP Semiconductors NV CEO Richard Clemmer last month. Former HP CEO Dion Weisler has already said he plans to step down as a director after the annual meeting, which will shrink the board size to 12 members at that time, HP said.At the time of Clemmer’s appointment to the board on Feb. 27, HP said it would give 10 days to Xerox to nominate an additional director.With the addition of Davis, Xerox continues to push to replace the entire board of HP in order to help facilitate a merger between the companies. Concurrently, Xerox officially launched a tender offer to acquire HP last week after the personal computer giant continued to rebuff its efforts for a tie-up.Xerox is offering $24 a share in cash and stock -- or roughly $35 billion -- to acquire HP. The photocopying pioneer has said combining would yield $2 billion in cost savings and more than $1 billion in additional revenue growth. Activist investor Carl Icahn, who owns an 11% stake in Xerox and a 4.4% stake in HP, has also been advocating for a merger between the two companies.HP’s board has rejected Xerox’s offer, arguing it undervalues the Palo Alto, California-based company. HP announced last month it will return $16 billion to shareholders as part of a standalone plan.Xerox said in a regulatory filing that executives for both companies, including Xerox CEO John Visentin and HP CEO Enrique Lores, spoke by telephone on March 3. Lores said he would like to arrange an in-person meeting to have an an “in depth conversation” about the three concerns HP has about a tie-up, namely the value exchange, capital structure and synergies, Xerox said in the filing.“Visentin responded that Xerox had already made an offer to combine the companies that Xerox believes HP stockholders support, and had no intention of deviating from the course and timeline of the offer, but added that Xerox would be willing to meet and listen if HP has an offer or proposal that it believes addresses their concerns and creates value for Xerox shareholders,” according to the filing.Xerox said the parties planned to schedule a meeting for this week.To contact the reporter on this story: Scott Deveau in New York at email@example.comTo contact the editors responsible for this story: Liana Baker at firstname.lastname@example.org, Matthew Monks, Elizabeth FournierFor 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) -- HP Inc. said it has rejected an unsolicited takeover offer from Xerox Holdings Corp. and has asked shareholders not to tender their shares.The offer “meaningfully undervalues HP and disproportionately benefits Xerox shareholders,” the Palo Alto, California-based company said in a statement on Thursday. Xerox’s “urgency” in launching the offer shows its “desperation to acquire HP to address its continued business decline.”Xerox on Monday pitched HP investors on a cash-and-stock offer valued at about $24 a share at the time. For each HP share, a holder would receive $18.40 in cash and 0.149 Xerox shares. The offer is set to expire April 21, Norwalk, Connecticut-based Xerox said Monday in a statement. The offer valued HP at approximately $34 billion as of Wednesday.HP shares were down about 1% at 9:52 a.m. in New York Thursday to $21.37. Xerox fell 4.7%.Xerox, which is much smaller than HP with a market value of about $7 billion, had already raised its bid from a cash-and-stock offer of about $22 per share in November. The deal is fueled with financing from from Citigroup Inc., Mizuho Financial Group Inc., Bank of America Corp., Mitsubishi UFJ Financial Group Inc., PNC Bank, Credit Agricole, Truist Financial Corp. and SunTrust Robinson Humphrey Inc. for the cash portion.A spokesperson for Xerox declined to comment on HP’s rejection.Read more: Xerox and HP Are in a $35 Billion Fight Over Ink CartridgesHP, which has a large printing business, has said in the past that it has many routes to create value that aren’t dependent on a combination with Xerox. Chief Executive Officer Enrique Lores is still new to HP’s top job, and has sought to make his mark on a company he’s worked at for more than three decades.Lores 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. The company has been frugal since splitting with server maker Hewlett Packard Enterprise Co. in 2015, avoiding big mergers and acquisitions and returning capital to shareholders.Xerox CEO John Visentin has criticized this plan as a piecemeal approach that won’t be as beneficial to HP as a combination.Xerox already had started a proxy fight, nominating 11 candidates for HP’s board to help close the deal. The two hardware giants have withered in a world increasingly driven by software, with less demand for printed documents. Xerox has argued the tie-up would revive both companies and unlock about $2 billion in synergies.(Updates with no comment from Xerox in sixth paragraph)To contact the reporter on this story: Amy Thomson in London at email@example.comTo contact the editors responsible for this story: Giles Turner at firstname.lastname@example.org, 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.