Xerox makes takeover bid for HP

Xerox has made a takeover bid for HP. This has been confirmed by computer manufacturer HP after rumors about it appeared on Wednesday. Talks are underway between the companies, but no decisions have been announced yet.

In a statement, HP said that the company has recently held talks with Xerox about a possible combination of the two companies. One option would be a takeover. Xerox made an offer last Wednesday, HP confirms. It is not clear how high that offer is, but according to previous rumors released by the Wall Street Journal, Xerox would offer more than $ 27 billion.

Xerox’s takeover bid for HP is striking, because at $8 billion, Xerox has a much lower market value than HP. The value of HP is about $27 billion. Xerox would like to finance the acquisition with financial backing from a major bank.

HP split into two companies in 2014, HP Inc. and Hewlett Packard Enterprise. Xerox has bid for the former, the division that makes printers and computers. It is not yet known whether HP will accept the takeover offer, but says the company will follow the path that is in the best interests of its shareholders. HP will announce its quarterly results on November 26, more details may be forthcoming.

Xerox had plans to merge with Fujifilm last year, but they fell through because shareholders felt that Xerox was undervalued in the deal.