HP outright rejects latest Xerox move

The HP board has given the latest overture from Xerox short shrift, again saying the hostile bid undervalues the business, and in a blunt letter saying there is no basis for further discussions.

 

HP CEO Enrique Lores and chairman Chip Bergh have sent Xerox CEO John Visentin a terse response to Visentin's letter stating Xerox had secured US$24bn in funding for the deal.

 

The HP execs said the funding approval “does not address the key issue”, which is the undervaluing of the HP business.

Both sides are now in a race to win over HP shareholders to their respective camps.

 

The letter was also addressed to Keith Cozza, the president and CEO of Icahn Enterprises, the investment vehicle of Carl Icahn, the man driving the deal.

 

Dear John,

We reiterate that the HP Board of Directors’ focus is on driving sustainable long-term value for HP shareholders. Your letter dated January 6, 2020 regarding financing does not address the key issue – that Xerox’s proposal significantly undervalues HP – and is not a basis for discussion. The HP Board of Directors remains committed to advancing the best interests of all HP shareholders and to pursuing the most value-creating opportunities.

On behalf of the Board of Directors.