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Nov. 17, 2019, 4:54 p.m. EST

HP rejects $33.5 billion takeover bid from Xerox

Computer and printer giant says it’s open to other options to combine with Xerox

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By Associated Press

Bloomberg News
HP has seen demand for printer ink wane.

HP Inc. says its board has rejected a roughly $33.5 billion takeover offer from Xerox.

The Palo Alto, Calif.-based company said Sunday that the cash and stock deal undervalues its business and its board cited concerns about “outsized” debt levels should the companies combine.

HP /zigman2/quotes/203461582/composite HPQ -4.75%  , which makes computers and printers, said it recognizes the potential benefits of consolidation and remains open to exploring other options to combine with Xerox Holdings Corp. /zigman2/quotes/201169674/composite XRX -4.78%  .

Both companies have faced difficulties as the demand for printed documents and ink have waned.

Xerox offered earlier this month to give HP shareholders $17 in cash and a fractional share of Xerox stock for each share they held in HP. They put the total value of the deal at $33.5 billion. If the deal had been completed, HP shareholders would own approximately 48% of the combined company.

HP rejected the offer, saying that it has “great confidence” in its ability to deliver long-term value. Its board also said it had “significant questions” about the trajectory of Xerox’s business and prospects, particularly given a recent decline in its revenue.

A representative for Xerox, which is based in Norwalk, Conn., could not be reached immediately for comment.

$ 16.63
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July 7, 2020 4:03p
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Volume: 4.17M
July 7, 2020 4:03p
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