Xerox on Monday has begun taking its case to acquire HP directly to the company’s shareholders Monday, arguing in a presentation that HP stockholders’ share of the combined company could be worth more than 50% more than its current value.
In a presentation made public on Xerox’s investor relations website Monday morning, the company said it is prepared to offer HP shareholders $17 a share for their stock, and 48% ownership in the combined firm if they accept Xerox’s terms. Xerox said that the combination of cash and equity ownership could give HP shareholders the equivalent of $31 a share in the merged company. HP shares closed Monday $20.47.
Xerox said that by joining forces with HP, the new company would create $1 billion to $1.5 billion in new revenue growth by means such as integrating HP products into Xerox’s service offerings and cross-selling each companies products. Xerox said it had urged HP to engage in discussions and conduct three weeks of mutual due diligence about Xerox’s terms in order to “realize the value that our offer represents.” read the rest here