Xerox threatens to go hostile in HP takeover bid
Xerox today threatened to take its $33.5bn (£26bn) takeover offer for HP hostile if the tech firm’s board did not agree to a “friendly” merger by next week.
Read more: HP rejects Xerox’s $33.5bn takeover bid but keeps door open for potential merger
HP rejected Xerox’s offer of $22 per share on Sunday, saying it “significantly undervalues” the company, but said it remained open to further discussions over a potential merger.
However, in a letter to board chair Chip Bergh and chief executive Enrique Lores, Xerox said it was “very surprised” and “confused” by HP’s decision to rebuff the offer.
“The Xerox board of directors is determined to expeditiously pursue our proposed acquisition of HP to completion – we see no cause for further delay,” the firm wrote.
The printer maker said it would take its offer directly to HP shareholders if the two sides had not agreed on “mutual confirmatory due diligence” for a deal by 5pm on 25 November.
In its response issued over the weekend, HP branded the takeover offer “highly conditional and uncertain”. Xerox hit back at this claim, insisting there would be no financing condition on its acquisition.
The printing firm also said it had accepted HP’s requests for due diligence, but that the computer maker had refused to open its books in return.
Read more: Xerox to sell off stake in Fuji Xerox for $2.3bn
“Any friendly process for a combination of this type requires mutual diligence – your proposal for one-way diligence is an unnecessary delay tactic,” it said.
HP has been contacted for comment on the letter.