HP declines Xerox's $45.6 billion offer to buy the company
HP Inc said on Sunday it had rejected an offer from printer maker Xerox Corp to buy the company, saying the US$33.5 billion (S$45.6 billion) cash-and-stock proposal "significantly undervalues" the personal computer maker.
However, the company also said it remained open to a potential merger with Xerox and that it hoped for further engagement with Xerox management about the merits of a potential deal.
"(The board) has unanimously concluded that it (the offer) significantly undervalues HP and is not in the best interests of HP shareholders", it said.
"In reaching this determination, the Board also considered the highly conditional and uncertain nature of the proposal, including the potential impact of outsized debt levels on the combined company's stock", HP said, adding it had also taken note of Xerox's annual revenue decline in making its decision.
Xerox made the US$33.5 billion cash-and-stock offer earlier in November, HP said on Sunday, citing a letter received from Xerox on Nov 5.
Xerox had offered HP shareholders US$22 a share that included US$17 in cash and 0.137 Xerox shares for each HP share, according to the Nov 5 letter.
The offer would have resulted in HP shareholders owning about 48 per cent of the combined company. - REUTERS