Xerox recently announced that it is withdrawing its tender offer to acquire HP and will no longer seek to nominate its candidates to HP’s Board of Directors.
A statement from the company published on 31 March reads:
‘The current global health crisis and resulting macroeconomic and market turmoil caused by COVID-19 have created an environment that is not conducive to Xerox continuing to pursue an acquisition of HP Inc.
‘While it is disappointing to take this step, the company is prioritising the health, safety and well-being of its employees, customers, partners and other stakeholders, and its broader response to the pandemic, over and above all other considerations.’
Xerox stated that 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.
‘Xerox’s Board of Directors and management team are grateful for the significant backing Xerox received from both Xerox and HP stockholders throughout this process. Xerox thank the talented individuals who agreed to stand for election to the HP Board, making time in their busy schedules to take on this responsibility when HP’s existing Board did not. And finally, Xerox thank the banks who agreed to finance this acquisition, who never wavered in their commitments, even during the market turmoil caused by COVID-19.’
HP released the following statement on 31 March regarding Xerox’s withdrawal:
‘We remain firmly committed to driving value for HP shareholders. HP is a strong company with market leading positions across Personal Systems, Print, and 3D Printing and Digital Manufacturing. We have a healthy cash position and balance sheet that enable us to navigate unanticipated challenges such as the global pandemic now before us, while preserving strategic optionality for the future.
‘Our focus remains on addressing the needs of our ecosystem of stakeholders around the world, ensuring that we build on our strength and resiliency throughout this crisis and position the business for the opportunities ahead. HP would like to thank our shareholders, partners, customers and employees for their input and continued support through this process.’
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