Xerox has withdrawn its hostile takeover bid of HP, citing economic disruption amid the coronavirus pandemic, which has wreaked havoc on global stock markets.
The company announced it was pulling out of the increasingly fraught takeover Tuesday, and would not seek to nominate candidates to HP’s board of directors.
“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.,” a Xerox corporate press release issued Tuesday stated. “Accordingly, we are withdrawing our tender offer to acquire HP.”
The release termed the step as “disappointing” for the acquisition many analysts felt was a bite too large for Xerox.
HP rejects ‘hostile’ takeover bid:‘We are not dependent on a Xerox combination’
The hot-blooded corporate speak flew last week. In a letter to HP on Thursday, Xerox’s Vice Chairman and CEO John Visentin said the board “is determined to expeditiously pursue our proposed acquisition of HP to completion – we see no cause for further delay.”
HP shot back Sunday rejecting the bid a second time, saying that it would “not consider combining with Xerox” until the copy-making giant answered questions about how it planned to raise the cash portion of a potential deal.
“We are not dependent on a Xerox combination,” HP said. “We were in private discussions with you in August and September, we repeatedly raised our questions, you failed to address them and instead walked away, choosing to pursue a hostile approach,” HP said.
HP responded to the news of the Xerox withdrawal Tuesday, stating in a release, “Our focus remains on addressing the needs of our ecosystem of stakeholders around the world, ensuring that we build on our strength and resiliency throughout this crisis.”