News

Xerox abandons attempt to take over HP Inc

02 958 2020

Citing the corona virus, Xerox announced just after the US stock market closed on April 1 evening that they are dropping their hostile takeover bid for HP Inc. 

Xerox is no longer offering to buy HP Inc shares. It is dropping its plans to use its ownership of HP shares to replace members of the HP board with those more inclined to accept the takeover bid. 

Xerox said that the corona virus has “created an environment that is not conducive to Xerox continuing to pursue an acquisition of HP.” 

Here at Printer-Benchmark.com we have been saying all along that it was only a matter of time till the markets came to their senses – and indeed that time was against Xerox. The markets agreed with us: take-up of the share offer was low. 

The fact is that Xerox has no manufacturing base for its office machines, and the supply of Fuji Xerox machines stops in March 2021. We do agree with “activist” shareholder in both companies Mr Icahn that there are considerable benefits to be reaped by the shareholders of a fused company. Both HP Inc and Xerox have enormous credibility in our industry, and compete head-on in remarkably few segments. 

As soon as this virus nightmare is over, HP Inc will acquire Xerox Corporation. Two questions remain: who will the CEO be, and what will the new company be called?