Why can't you be a nice little computer maker and just GET IN THE TRUNK, Xerox tells HP in hostile takeover alert

Did you copy that?


Xerox is escalating its takeover efforts against HP Inc with an explicit threat that it could soon begin a hostile takeover.

An open letter to HP's board posted on Thursday demands that the printer and PC arm of the legendary technology biz agree to enter the next phase of merger talks or face a share buyout campaign.

In other words, unless HP agrees to move forward with the merger proposal, Xerox will go directly to its shareholders and buy enough of a stake in HP to oust the board entirely and put its own people in charge.

"In light of favorable markets and terms, Xerox is determined to capture the compelling opportunity for our respective shareholders and strongly encourages HP’s Board of Directors not to sanction further delay in light of our extensive discussions to date," Xerox says in its letter to HP.

"Xerox remains willing to devote the resources necessary to complete mutual due diligence over the next three weeks and confirm the substantial cost and revenue synergies that we both believe could be achieved through a combination."

Carl Icahn at at Trump Tower on 5th Avenue.

Icahn smell money! Corporate raider grabs $1.2bn of HP stock to push for Xerox merger

READ MORE

The demand comes three days after HP rejected Xerox's initial proposal to acquire it for $33.5bn, claiming the offer undervalues its own stock and raising doubts about Xerox's own viability.

Currently, the two sides are at odds over due diligence, the process of one company cracking open the other's books to get a good look at their inner workings and financial state.

HP says it will not consider any merger with Xerox until it gets the ability to perform due diligence of the prospective buyer, while Xerox says that it has a problem with HP's demand only going one way.

"You have requested customary due diligence, which we have accepted, but you have refused to agree to corresponding due diligence for Xerox," the letter reads.

"Any friendly process for a combination of this type requires mutual diligence—your proposal for one-way diligence is an unnecessary delay tactic."

HP did not respond to a request for comment on the letter.

Should Xerox opt to go the hostile takeover route, it would have at least one powerful ally in HP's ranks. Activist investor Carl Icahn, who owns more than $1bn in HP shares, has already thrown his backing behind the Xerox buyout, calling the proposed merger a "no-brainer" for the two tech giants. ®

Similar topics

Broader topics


Other stories you might like

  • Ransomware encrypts files, demands three good deeds to restore data
    Shut up and take ... poor kids to KFC?

    In what is either a creepy, weird spin on Robin Hood or something from a Black Mirror episode, we're told a ransomware gang is encrypting data and then forcing each victim to perform three good deeds before they can download a decryption tool.

    The so-called GoodWill ransomware group, first identified by CloudSEK's threat intel team, doesn't appear to be motivated by money. Instead, it is claimed, they require victims to do things such as donate blankets to homeless people, or take needy kids to Pizza Hut, and then document these activities on social media in photos or videos.

    "As the threat group's name suggests, the operators are allegedly interested in promoting social justice rather than conventional financial reasons," according to a CloudSEK analysis of the gang. 

    Continue reading
  • Microsoft Azure to spin up AMD MI200 GPU clusters for 'large scale' AI training
    Windows giant carries a PyTorch for chip designer and its rival Nvidia

    Microsoft Build Microsoft Azure on Thursday revealed it will use AMD's top-tier MI200 Instinct GPUs to perform “large-scale” AI training in the cloud.

    “Azure will be the first public cloud to deploy clusters of AMD's flagship MI200 GPUs for large-scale AI training,” Microsoft CTO Kevin Scott said during the company’s Build conference this week. “We've already started testing these clusters using some of our own AI workloads with great performance.”

    AMD launched its MI200-series GPUs at its Accelerated Datacenter event last fall. The GPUs are based on AMD’s CDNA2 architecture and pack 58 billion transistors and up to 128GB of high-bandwidth memory into a dual-die package.

    Continue reading
  • New York City rips out last city-owned public payphones
    Y'know, those large cellphones fixed in place that you share with everyone and have to put coins in. Y'know, those metal disks representing...

    New York City this week ripped out its last municipally-owned payphones from Times Square to make room for Wi-Fi kiosks from city infrastructure project LinkNYC.

    "NYC's last free-standing payphones were removed today; they'll be replaced with a Link, boosting accessibility and connectivity across the city," LinkNYC said via Twitter.

    Manhattan Borough President Mark Levine said, "Truly the end of an era but also, hopefully, the start of a new one with more equity in technology access!"

    Continue reading
  • Cheers ransomware hits VMware ESXi systems
    Now we can say extortionware has jumped the shark

    Another ransomware strain is targeting VMware ESXi servers, which have been the focus of extortionists and other miscreants in recent months.

    ESXi, a bare-metal hypervisor used by a broad range of organizations throughout the world, has become the target of such ransomware families as LockBit, Hive, and RansomEXX. The ubiquitous use of the technology, and the size of some companies that use it has made it an efficient way for crooks to infect large numbers of virtualized systems and connected devices and equipment, according to researchers with Trend Micro.

    "ESXi is widely used in enterprise settings for server virtualization," Trend Micro noted in a write-up this week. "It is therefore a popular target for ransomware attacks … Compromising ESXi servers has been a scheme used by some notorious cybercriminal groups because it is a means to swiftly spread the ransomware to many devices."

    Continue reading
  • Twitter founder Dorsey beats hasty retweet from the board
    As shareholders sue the social network amid Elon Musk's takeover scramble

    Twitter has officially entered the post-Dorsey age: its founder and two-time CEO's board term expired Wednesday, marking the first time the social media company hasn't had him around in some capacity.

    Jack Dorsey announced his resignation as Twitter chief exec in November 2021, and passed the baton to Parag Agrawal while remaining on the board. Now that board term has ended, and Dorsey has stepped down as expected. Agrawal has taken Dorsey's board seat; Salesforce co-CEO Bret Taylor has assumed the role of Twitter's board chair. 

    In his resignation announcement, Dorsey – who co-founded and is CEO of Block (formerly Square) – said having founders leading the companies they created can be severely limiting for an organization and can serve as a single point of failure. "I believe it's critical a company can stand on its own, free of its founder's influence or direction," Dorsey said. He didn't respond to a request for further comment today. 

    Continue reading

Biting the hand that feeds IT © 1998–2022