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March 31, 2020 09:50 pm

Xerox Ends Its Hostile Takeover Bid For HP

Xeros is pulling the plug on its hostile bid to buy larger rival HP (Warning: paywalled; alternative source) after the coronavirus pandemic undermined the copier maker's ability to pull off the debt-laden merger. The Wall Street Journal reports: Xerox said Tuesday it is ending both its more than $30 billion tender offer and a proxy fight to replace the printer and PC maker's board. Xerox concluded it is no longer prudent to pursue the deal given the public health crisis and resulting market swoon. The move puts the kibosh on one of the biggest mergers in the works and underscores the blow that the coronavirus has dealt to the world of deal making. It marks the end of a five-month-long offensive by Xerox, kicked off when its offer became public in early November after the two companies had earlier explored a combination quietly but failed to come to an agreement. HP has repeatedly rebuffed its rival since then, rejecting Xerox's latest cash-and-stock offer of $24 a share and an earlier one as insufficient and too risky given the amount of debt involved. Xerox's move to buy a company more than three times its size was always going to be a challenge, but at the outset the company was in a stronger position than it is today. It had cash coming in from the sale of its joint venture with Fujifilm and its stock had been rising as it continued to cut costs.

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