Xerox said Friday that it intends to push ahead with its efforts to acquire HP despite the Palo Alto-based company adopting a shareholders’ rights plan meant to stymie Xerox’s unsolicited buyout attempt.
Xerox’s comments are the latest in what has been a three-month-long effort by the printing and imaging company to acquire HP. Xerox’s current offer values HP at $24 a share, or $34 billion in cash and Xerox stock.
“We believe HP shareholders appreciate that the value we could create by combining Xerox and HP outweighs – and is incremental to – anything HP could achieve on its own,” Xerox said in a company statement. Late Thursday, HP said the plan, also known as a poison pill, is meant to protect its shareholders as Xerox prepares to commence its tender offer for HP’s shares on or around March 2.
Xerox, in addition to preparing to launch its tender offer, is also putting forth a slate of 11 directors for HP shareholders to vote upon at the company’s next annual shareholders’ meeting.
HP said its poison pill will go into effect if any outside group acquires 20% of HP’s stock. Should that occur, HP said its shareholders will be able to buy additional HP shares at a discounted price, which would dilute the value of the ownership group’s stake. The shareholders’ rights plan will remain in effect until Feb. 20, 2021.
Rob Enderle, director of technology research firm the Enderle Group, said it should come as no surprise that HP is putting up roadblocks like the poison pill plan in order to make Xerox’s buyout attempt as difficult as possible. read more here