Amid the current health and economic crisis, Xerox has announced it is calling off its attempt to merge with HP.
Xerox had been attempting to acquire HP since last year, putting in two separate offers. The first offer was unanimously rejected by HP’s board, leading Xerox to increase their offer in February. The company hoped the offer would enable “stockholders to accept Xerox’s compelling offer despite HP’s consistent refusal to pursue the opportunity.”
With the ongoing global crisis, however, Xerox has ended its hostile takeover attempt. According to a company press release, the current situation has “created an environment that is not conducive to Xerox continuing to pursue an acquisition of HP Inc. (NYSE: HPQ) (“HP”). Accordingly, we are withdrawing our tender offer to acquire HP and will no longer seek to nominate our slate of highly qualified candidates to HP’s Board of Directors.
“While it is disappointing to take this step, we are prioritizing the health, safety and well-being of our employees, customers, partners and other stakeholders, and our broader response to the pandemic, over and above all other considerations.
“There remain compelling long-term financial and strategic benefits from combining Xerox and HP. The refusal of HP’s Board to meaningfully engage over many months and its continued delay tactics have proven to be a great disservice to HP stockholders, who have shown tremendous support for the transaction.”
It remains to be seen what measures Xerox may take once the crisis is over.
