Xerox announced its intention to launch a tender offer on or around March 2, 2020 for the outstanding shares of common stock of HP at a price of $24 per share, which will be comprised of $18.40 in cash and 0.149 Xerox shares for each HP share.
This is a boost of what Xerox has offered in the past and according to the company is because it has been chatting to some of HP’s largest stockholders.
“These stockholders consistently state that they want the enhanced returns, improved growth prospects and best-in-class human capital that will result from a combination of Xerox and HP”, the company said.
It thinks the tender offer announced today will enable these stockholders to accept Xerox’s compelling offer despite HP’s consistent refusal to pursue the opportunity.
The tender offer will not be subject to any conditions related to financing or due diligence.
Xerox thinks that the value created by the synergies realised in a combination of Xerox and HP is incremental to any value that HP can create by revising its strategic plan or dramatically changing its capital allocation policy to incorporate additional share repurchases.