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HP Urges Investors to Spurn Xerox Takeover

Nico Grant

(Bloomberg) -- HP Inc. again asked shareholders to reject Xerox Holdings Corp.’s takeover offer, saying that a complex merger could be “disastrous” for the personal computer giant amid economic shocks stemming from the Covid-19 pandemic.

“Under these circumstances and consistent with our fiduciary duties, we believe that we should not divert valuable time, attention and resources to a dialogue with Xerox about its proposed transaction,” the Palo Alto, California-based company said Wednesday in a letter to investors. “Since Xerox launched its unsolicited exchange offer and nominated directors, the global, social, economic and financial environments have changed radically. Despite this, Xerox continues to advance its tender offer and its proposed slate of directors in an effort to force a combination.”

Xerox has sought to acquire HP, the world’s second-largest personal computer maker, for $24 a share in cash and stock, a deal valued at roughly $35 billion. Xerox said this month it would pause its pursuit of HP during the pandemic, but the company planned to resume the effort when the situation improved, Bloomberg News reported. Xerox has launched a tender offer for outstanding shares of HP and also nominated a slate of directors to replace the company’s board.

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