HP Rejects Xerox’s $33.5 Billion Takeover Offer

The board of directors of HP Inc. unanimously rejected a multi-billion dollar offer from printer manufacturer Xerox. HP thinks the offer is too low and says a takeover is not in the interest of its shareholders.

HP also rejected the takeover offer due to the “uncertain nature of the proposal” and the heavy debt burden that would be placed on the shares of the combined company. HP says it is open to a possible consolidation and that it wants to explore the possibilities. Before that, however, the company wants to gain more insight into Xerox’s finances.

HP’s rejection letter shows Xerox’s original offer. This shows that it concerns a total amount of 33.5 billion dollars. Xerox offered $22 per HP share, 20 percent more than what the stock was worth on the exchange at the time.

In early November, HP confirmed that it had received a takeover offer from Xerox. Last year, Xerox had plans to merge with Fujifilm, but that didn’t work out. Shareholders then felt that Xerox was undervalued in that deal.