This is your last chance, HP. There's no turning back. You take blue poison pill, the story ends. You take the red Xerox pill, you stay in Wonderland

Photocopier goliath hits back at PC giant's attempt to scupper takeover


Xerox has shot back at HP's decision to adopt a shareholder rights plan – a poison pill designed to derail the photocopier titan's $36.5bn hostile takeover of the PC'n'printer slinger.

Last night, HP adopted the protective measure, engineered to make life difficult for Xerox. The rights plan states that if someone (cough cough, Xerox) acquires more than 20 per cent of HP's stock, the company will issue discounted stock for everyone else to snap up, diluting that certain someone's stake.

“We believe it is essential that HP shareholders have sufficient time and full information when considering any tender offer that Xerox may commence,” said Chip Bergh, chairman of HP’s board of directors. He said HP remains “very concerned about Xerox’s aggressive and rushed tactics, and any process that is not based on full information is a threat to our shareholders.”

The rights plan, according to HP, “guards against coercive tactics to gain control of the board without paying all shareholders an appropriate premium for that control”; it expires in one year; and helps shareholders “realize the long-term value of their investment in the company.”

Today, Xerox snapped back in a statement to El Reg, saying the “HP board has clearly adopted a poison pill because our offer is receiving overwhelming support from their shareholders.”

golden eggs

Xerox hopes wining and dining HP shareholders will convince them of takeover

READ MORE

Xerox announced it wanted to gobble HP for $33.5bn in November, had its offer repeatedly rejected, published a presentation to convince HP shareholders that its offer was the best route forward for them, will try to get 11 directors elected to HP’s board in the summer, and is on a full-blown charm offensive with HP’s investors. Xerox got a commitment from three banks to fund part of the merger, and recently upped its offer to $36.5bn.

A few words on that increased offer are expected from HP on Monday, February 24, when it reports the financial results for its first quarter of its fiscal year, which ended last month.

“Regardless of what the company and its army of advisors announce Monday, we believe HP shareholders appreciate that the value we create by combining Xerox and HP outweighs – and in incremental to – anything HP could achieve on its own," Xerox thundered. "Despite the HP board’s intention to deny shareholder the chance to choose for themselves, we will press ahead with out previously announced tender offer and electing our slate of highly qualified director candidates.”

HP and Xerox, it seems, have become nothing but a play thing for a bunch of Wall St moneybags.

For its part, HP voiced worries about Xerox’s revenue trajectory, with sales continuing to fall sharply, and the debt that a takeover will saddle the combined organisation with. Both points appear valid reasons to refuse a mutual due-diligence probe. Xerox thinks these are stalling tactics that are preserving the jobs of HP’s exec line-up. ®


Keep Reading

HP CEO talks up HP-ink-only print hardware and higher upfront costs for machines that use other cartridges

'These actions will help us to optimize the business by reducing the number of unprofitable customers'

HP loses attempt to deny colossal commission to star sales staffer

Contract was clear and trying to backdate changes was naughty, rules Australian court

Former HP CEO and Republican Meg Whitman – who split HP with mixed success – says Donald Trump can't run a business

Vows to vote for Democrat Joe Biden instead - as will ex-HP chief Carly Fiorina

HP bows to pressure, reinstates free monthly ink plan... for existing customers

Is this the spirit of Xmas we've heard of? Well, new customers will have to pay to print 15 pages per month

Something to consider in case Dell freezes over: HP unfolds 2-in-1 laptop with Intel Tiger Lake brains, bigger screen

Refresh dukes it out with gear from rival

HP: That print-free-for-life deal we promised you? Well, now it's pay-per-month to continue using your printer ink

EFF on the attack as IT giant tries to claim free supplies during 'device lifetime' just an introductory offer

If you suddenly can't print to your HP Printer from your Mac, you're not alone: Code security cert snafu blamed

Updated Driver software snubbed by macOS 10.15, 10.14, Amazon Music, too

What's in HP's sack? Pre-built Ubuntu machines for the little data scientists in your life

Certain ZBook Studio G7 and Book Create G7 models ready to get number crunching out of the box

Biting the hand that feeds IT © 1998–2021