Xerox Undervalues HP Inc. With a Hostile Bid Of $33 Billion

HP Inc. turned down a bid from Xerox of $33 billion saying it undervalued the computer and printmaker giants.

However, the HP board is still looking forward to negotiating with Xerox, the photocopying giant, for having a deal with its rival.

HP issued a statement saying, “We recognize the potential benefits of consolidation, and we are open to exploring whether there is value to be created for HP shareholders through a potential combination with Xerox,”

Both companies are in the process of downsizing and cutting down their budgets. Xerox’s revenue plunged down from $10 billion to $9.2 billion since June 2018 resulting in cutting down $640 million in expenses. HP is also cutting down $1 billion of expenses. It is still three times more valuable than Xerox and is worth $27 billion.

Carl Icahn, the prominent shareholder of both companies is of the view that this merger will be a good idea.  

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