Xerox drops HP takeover bid citing coronavirus economic ‘turmoil’

Xerox drops HP takeover bid citing coronavirus economic 'turmoil'


Xerox has withdrawn its hostile takeover bid of HP, citing economic disruption amid the coronavirus pandemic, which has wreaked havoc on global stock markets.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’

On Tuesday, Xerox dropped its bid to acquire HP, citing the economic 'turmoil' caused by the coronavirus pandemic.

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.


Source link

By Javier Manning

Javier has been in the field of content writing for almost 8 Years as he hails from the Biotechnology background. The edifying articles portray her craving towards language. His keen hobby of reading technological innovations related books or articles has sown the seed of being a well-versed editor with the current scenario of numerous industry verticals. He is one of the valuable assets to this publication. The Industry News Press has awarded him with a senior editors post based on his skillful performance to date.