Xerox is reportedly dropping its $30 billion hostile takeover bid for for HP (HPQ, XRX)
  • Xerox is ending its hostile bid to take over Hewlett-Packard, ending a corporate battle that got derailed by the coronavirus crisis.
  • “While it is disappointing to take this step, we are prioritizing the health, safety and well-being of our employees, customers, partners and other stakeholders,” Xerox said in a statement.
  • Xerox will withdraw its more than $30 billion tender offer for HP, ending its campaign to replace the HP board, the Wall Street Journal reported.
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Xerox is dropping its hostile bid to buy Hewlett-Packard, ending a corporate takeover fight that got overtaken by the coronavirus crisis.

Xerox announced Tuesday that it will end its tender offer worth more than $30 billion and a proxy campaign to replace the HP board. The decision was first reported by the Wall Street Journal.

“While it is disappointing to take this step, we are prioritizing the health, safety and well-being of our employees, customers, partners and other stakeholders,” Xerox said in a statement.

Xerox unveiled its unsolicited bid to buy HP late last year. The proposal was rejected by the Palo Alto, California company which subsequently led to a proxy battle.

But the coronavirus crisis apparently derailed the Xerox campaign. Two weeks ago, Xerox CEO John Visentin said it was “prudent to postpone” all activities related to its bid to buy HP.

However, Xerox also reaffirmed its belief that merging the two companies made sense. 

“There remain compelling long-term financial and strategic benefits from combining Xerox and HP,” the company said. “The refusal of HP’s Board to meaningfully engage over many months and its continued delay tactics have proven to be a great disservice to HP stockholders, who have shown tremendous support for the transaction.”

Reacting to Xerox’s decision to end its proxy campaign, HP stressed that it is “a strong company” with “a healthy cash position and balance sheet that enable us to navigate unanticipated challenges such as the global pandemic now before us.”

Last week, HP CEO Enrique Lores also said the company was focusing on the pandemic as he maintained the HP board’s position that Xerox’s proposal “fundamentally undervalues HP.”

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