Last year, the company decided to launch a hostile takeover bid for HP.Xerox, earlier announced that it would increase its acquisition offer from $22 per share (calculated based on HP's $17 per share and 0.137 Xerox shares) to $24 per share (calculated based on HP's $18 per share and 0.149 Xerox shares), and it is expected to propose to acquire HP for a total value of $340 billion.
Xerox expects to directly attract HP investors by increasing its offer price and bypass the resolution of members including HP CEO Enrique Lores and Chairman Chip Bergh, hoping to successfully acquire HP.
HP has not yet responded to Xerox's proposal. Previously, HP believed that Xerox underestimated its actual market value, so it repeatedly rejected Xerox's acquisition proposals and even refused to provide financial information, making it impossible for Xerox to conduct due diligence smoothly.
Furthermore, while HP previously stated that it would not rule out the possibility of accepting Xerox's proposed acquisition, it also questioned Xerox's financial capabilities. After all, Xerox's revenue performance has fallen short of market expectations in four of the past five quarters, and further declines are possible in the future, leading HP to conclude that Xerox lacks the cash flow to support the acquisition.
However, in its response earlier this year, Xerox emphasized that it had obtained binding financing commitments totaling US$240 billion from Citigroup, Mizuho Bank and Bank of America, which it expected to use to complete the acquisition of HP. It also believed that the increased price offer would convince HP investors to accept the acquisition proposal.
