HP’s Board Rejects Xerox’s $33.5 Billion Takeover Offer but Remains Open to Further Consideration

What's Inside

HP’s board rejected Xerox acquisition bid, saying the offer undervalues the company and is not in the interests of the shareholders.

• The company also expressed concerns about Xerox’s declining fortunes and the debt that would be needed to finance the acquisition.
• HP is in the midst of a restructuring plan to simplify its operating model and become more digitally enabled.
• HP hopes the plan will shave $1 billion in annual cost.

Management cited its confidence in its strategy and ability to execute to drive sustainable long-term value as part of the reason for rejecting the offer, but did say it remained open to exploring whether there is value for HP shareholders through a combination with Xerox.