HP has once again rebuffed an unsolicited acquisition attempt by Xerox after the printer giant secured US$24 billion to fund its takeover.
The personal computer vendor’s board of directors argued the financing for Xerox’s proposed US$33.5 billion offer failed to address the core issue that the proposal still “significantly” undervalues it.
An open letter signed by HP CEO Enrique Lores and chairman Chip Bergh concluded by saying: “The HP board of directors remains committed to advancing the best interests of all HP shareholders and to pursuing the most value-creating opportunities.”
HP’s letter comes two days after Xerox announced it had engaged in “constructive dialogue” with many of HP’s largest shareholders, whereby it claimed it had secured US$24 billion in binding financing commitments from Citi, Mizuho and Bank of America to complete its acquisition.
“My offer stands to meet with you in person, with or without your advisors, to begin negotiating this transaction,” Xerox CEO John Visentin told senior shareholders according to Reuters.
The takeover bid first began in November when activist investor Carl Icahn bought a US$1.2 billion stake in HP Inc and began pushing for its merger with Xerox.
Although Icahn argued the union could yield big profits for investors, HP quickly rejected the offer and later raised concerns about the long-term financial health of Xerox after the latter revealed it would attempt a hostile bid.