Xerox Suspends Attempts To Acquire HP Over Coronavirus Concerns

Xerox said in a brief statement that it is not giving priority to the proposal to acquire HP for the time being. The company points to the greater importance of the health and safety of its employees, in light of the concerns about the corona virus.

In the statement, Xerox leaves open whether this postponement also means cancellation; it seems that the company is leaving the door ajar to continue the takeover attempt at a later stage. The company says it is now “prudent to postpone additional presentations, media interviews and meetings with HP shareholders in order to protect Xerox’s stakeholders from the pandemic.” Xerox says this decision is not a result of the company’s recent decline in value in the financial markets, or the temporary suspension of trading in HP stocks.

The HP board rejected a takeover bid from Xerox more than a week ago, although the final decision is mainly in the hands of the majority of HP shareholders. This offer was seen as a hostile takeover offer; it was a bid of $24 a share, in order to acquire all of HP’s outstanding shares. Xerox has been trying to acquire HP since November. The first takeover offer, which involved an amount of $33.5 billion, was also rejected by HP’s board of directors.