Home / Tech News / Featured Tech News / HP rejects Xerox acquisition offer but remains open to exploring the possibility further

HP rejects Xerox acquisition offer but remains open to exploring the possibility further

A couple of weeks ago, we first heard that Xerox was planning on making an acquisition offer to take over HP, as part of a deal backed by a major bank. While HP is looking to shake up its business by cutting down its work force by 16 percent, the company won’t be accepting the acquisition offer from Xerox for now.

In a press release titled ‘HP Board of Directors unanimously rejects unsolicited Xerox proposal’, the company says that the acquisition offer “significantly undervalues HP” and is not “in the best interests of HP shareholders”.

As part of a letter sent to John Visentin, Xerox CEO and vice chairman, HP’s board also added that the company has “great confidence in our strategy and our ability to execute to continue driving sustainable long-term value at HP”. HP’s upper-level executives are also taking actions to “enhance shareholder value”.

With all of that said, HP does recognise the “potential benefits of consolidation” and is “open to exploring whether there is value to be created for HP shareholders through a potential combination with Xerox”. So while HP isn’t accepting the current acquisition offer, it is open to talking things out and exploring whether or not a better agreement can be arranged.

Discuss on our Facebook page, HERE.

KitGuru Says: Xerox won’t be buying up HP anytime soon but it looks like discussions could go on behind the scenes for a while. We’ll keep an eye out for any further updates on this but for now, HP seems to be confident in its current strategy.

Become a Patron!

Check Also

KitGuru Games: Resolution Doesn’t Matter (Anymore)

There once was a time when console generations were defined through the resolution by which the console could output at. One of the biggest selling points of the Xbox 360 and PS3 was the fact that these systems were capable of outputting games in HD. Yet, as consoles support higher and higher resolutions, we have seen developers focus less on offering games at such resolutions, instead using new rendering techniques to create what may be the start of the post-resolution gaming experience...