HP says no to Xerox

And in the end a dry no came, at least for the moment. HP rejected the proposed acquisition of Xerox. There are two official reasons: the first is that the offer does not reflect the true value of the company and the second is that the offer does not fall within the best interests of the shareholders. Moreover, the American computer giant has also questioned Xerox's ability to close the deal, especially given the high debt perspective of the company that was supposed to be born. Indeed, Xerox is much smaller in terms of capitalization than HP.

However, HP is not opposed to a possible acquisition but to these conditions. As if to say that if Xerox really wants to conclude the transaction it must relaunch and propose more solid guarantees. The American competitor giant has reasons both to resist an acquisition operation and to get caught up. That's why the company left a small gap open. In October, HP announced the intention to cut up to 9,000 jobs (about 16% of its current staff) between now and the end of the 2022 fiscal period. It is not in difficulty given that its profits have grown this summer, but it is certainly an important signal.

At the same time, the sale to Xerox would mark the end of an era of one of the oldest companies in Silicon Valley that would lose its independence to pass control to another reality. This would not be a trivial move for HP, even if it made financial sense.

The only certain data is that HP does not currently sell. To understand, now, if the story ends here or if Xerox will try again, re-launching its acquisition offer.

Facebook Comments