20.30 -0.02 (-0.10%)
After hours: 7:17PM EST
|Bid||20.34 x 4000|
|Ask||20.38 x 2900|
|Day's Range||19.96 - 20.33|
|52 Week Range||15.93 - 24.09|
|Beta (3Y Monthly)||1.50|
|PE Ratio (TTM)||9.82|
|Earnings Date||Feb 25, 2020 - Mar 2, 2020|
|Forward Dividend & Yield||0.70 (3.52%)|
|1y Target Est||20.52|
The multiphase project could see as much as 1.5 million square feet of new offices, R&D; and manufacturing space for HP over the next 15 years.
In an open letter to HP shareholders, the activist investor urges the HP board to reconsider its to reverse its rejection of Xerox’s $22-a-share bid for the company.
"HP shareholders deserve the opportunity to decide for themselves whether a combination with Xerox makes sense before the idea is summarily rejected by HP's board," Icahn said. Icahn, who has 10.85% stake in Xerox and 4.24% in HP, said the combination could yield over $2 billion in cost savings. "The combination of HP and Xerox is one of the most obvious no-brainers I have ever encountered in my career," he said.
“It is absurd for the HP board and management team, with such a history of underperformance and missteps, to claim to have had a sudden epiphany and now expect shareholders to trust them to execute a standalone restructuring plan,” Icahn wrote in a letter he plans to send to shareholders.
Activist investor Carl Icahn on Wednesday urged the shareholders of HP Inc who agree with the merger with Xerox Holdings Corp to reach out to the personal computer maker's directors for immediate action. "HP shareholders deserve the opportunity to decide for themselves whether a combination with Xerox makes sense before the idea is summarily rejected by HP's board," Icahn said. Icahn, who has 10.85% stake in Xerox and 4.24% in HP, said the combination could yield over $2 billion in cost savings.
(Bloomberg) -- Carl Icahn is urging HP Inc. to push ahead with takeover talks with Xerox Holdings Corp., arguing the hardware maker’s standalone plans amount “to little more than rearranging the deck chairs on the Titanic.”A tie-up between the companies could yield more than $2 billion in synergies, the billionaire investor said in a letter addressed to HP shareholders Wednesday.“It is absurd for the HP board and management team, with such a history of underperformance and missteps, to claim to have had a sudden epiphany and now expect shareholders to trust them to execute a standalone restructuring plan,” Icahn said in the letter confirming an earlier report from Bloomberg.HP last month rejected an unsolicited, cash-and-stock offer from Xerox worth $22 per share, or about $33 billion. Xerox plans to go to HP shareholders to present its case for a deal. Icahn, who owns stakes in both companies, said he was perplexed over HP’s board and management refusing Xerox’s proposal for mutual due diligence to explore a takeover.HP’s decision to stonewall Xerox is also irrational and not in the best interest of shareholders, Icahn said.“I can say without exaggeration that the combination of HP and Xerox is one of the most obvious no-brainers I have ever encountered in my career -- one where activism should not even be necessary at all because the merits of the combination are so obvious to everybody involved,” Icahn said.The deal will likely get done but the process will stretch out for a little while, according to Anand Srinivasan, senior technology analyst with Bloomberg Intelligence.“Partially, the reticence is the structure of the deal,” he said in an interview. “Who’s in charge? Who’s not? Who’s buying whom? The other part of it is to maybe push up the premium and play a little harder to get.”Icahn urged his fellow shareholders to reach out to HP’s directors and let them know that immediate action is needed to explore this opportunity.A representative for Xerox declined to comment. A representative for HP wasn’t immediately available for comment.HP’s shares, which have fallen about 14% over the past year, rose 1.5% in trading Wednesday to C$19.93 a share as of 9:36 a.m. in New York. Xerox’s shares rose nearly 1%.Icahn is the largest shareholder in Xerox, with a nearly a 11% stake. He also owns 4.2% stake in HP, making him its fifth-largest holder, according to data compiled by Bloomberg.HP has said it’s open to exploring a deal, but only if it can do due diligence on Xerox. Xerox, in turn, has requested that HP opens its own books in order to proceed with the talks.Icahn said he sees no downside to granting mutual due diligence. He also wondered whether HP was refusing the request as a delaying tactic so that its chief executive officer and board members could keep their jobs.“I cannot believe that the recalcitrance of HP’s board is driven by any real confidence in its standalone restructuring plan, which the market, shareholders and analysts met with extreme indifference,” he said.HP has argued the proposal undervalues the company. It also raised concerns about Xerox’s ability to raise the necessary capital and its debt load as reasons for not granting Xerox mutual due diligence.(Updates with analayst comments in paragraph seven, share prices in eleventh paragraph.)To contact the reporter on this story: Scott Deveau in New York at email@example.comTo contact the editors responsible for this story: Liana Baker at firstname.lastname@example.org, Matthew MonksFor more articles like this, please visit us at bloomberg.com©2019 Bloomberg L.P.
Hedge funds and large money managers usually invest with a focus on the long-term horizon and, therefore, short-lived dips or bumps on the charts, usually don't make them change their opinion towards a company. This time it may be different. During the fourth quarter of 2018 we observed increased volatility and a 20% drop in […]
Intel Corp. may become the Grinch who stole Christmas from large PC makers. HP Inc. (HPQ) and Dell Technologies Inc. (DELL) both admitted Tuesday that they expect a negative impact on their future results as a result of chip shortages for which Intel apologized last week. Dell laid bare that the chip giant’s shortages have gotten worse, an issue that was not clear in the apology, since Intel (INTC) reiterated its stronger-than-expected guidance for the fourth quarter.
The United States has formally requested the extradition of Michael Lynch, the British tech billionaire who sold his data company Autonomy to Hewlett Packard (HP) in an ill-fated $11.1 billion deal, to face charges including securities fraud, wire fraud and conspiracy. The U.S. embassy in London submitted the extradition request on Nov. 21 for Lynch to stand trial in the United States, according to a court filing dated Dec. 1. Lynch, once hailed as Britain's answer to Bill Gates, is currently battling the American IT giant in London's High Court.
The United States has formally requested the extradition of Michael Lynch, the British tech billionaire who sold his company to Hewlett Packard (HP) in an ill-fated $11.1 billion deal, to face charges including securities fraud, wire fraud and conspiracy. The U.S. embassy in London submitted the extradition request on Nov. 21 for Lynch to stand trial in the United States, according to a court filing dated Dec. 1.
Climate change is accelerating. To avoid catastrophic temperature rises, we need to cap our carbon emissions now and begin the swift journey to net zero by 2050. Corporate activism is the game-changer we need.
Cyber Monday is gradually gaining more attention from bargain hunters than Black Friday. These ETFs and stocks could be great picks in this regard.
FEATURES - MAIN Mergers and acquisitions are no replacement for innovation, but that has never stopped tech firms from trying to buy their way into the future. In 1986, Burroughs bought Sperry for $4.
As Xerox makes a daring bid for HP Inc., old-line tech struggles for relevance. Weighing the future of Cisco, IBM, Intel, Oracle, and others.
(Bloomberg) -- Meg Whitman, the Silicon Valley veteran and onetime gubernatorial candidate, has found a new calling: pro-soccer owner.The executive is buying a minority stake in Major League Soccer team FC Cincinnati, part of a push by the first-year team to raise money for facilities and player contracts. Whitman, whose purchase was approved Wednesday, will become the sixth woman on the MLS Board of Governors, one of five to join within the past two years.The former Hewlett Packard Co. chief and her husband, Griff Harsh, are taking about 20% of the club at a valuation of around $500 million, according to three people familiar with the deal. A team spokeswoman declined to comment on the terms.“Cincinnati has a special place in my heart,” said Whitman, who started her career at Procter & Gamble Co.’s Cincinnati headquarters and continues to serve on the company’s board. “FC Cincinnati and soccer have both already proven to be cultural forces in the market. Between the crowds at Nippert Stadium and the corporate commitments it has drawn, it’s a team with an exceptionally high ceiling.”FC Cincinnati began play as a United Soccer League franchise and moved up to MLS before the 2019 season. The team’s majority owner is Carl Lindner III, co-chief executive officer of Cincinnati-based American Financial Group Inc. Other investors include Scott Farmer, CEO of Cintas Corp.; George Joseph of Joseph Auto Group; and Larry Sheakley, founder of Sheakley Group of Cos.The team has been working with the Raine Group to help bring on capital; O’Melveny & Myers represented Whitman and Harsh.Whitman, 63, is CEO of the short-form video startup Quibi, which was founded last year. She previously led EBay Inc., and was CEO of HP -- and later, Hewlett Packard Enterprise, when the company split in two. Harsh is the chairman of the neurological surgery department at the University of California, Davis.Whitman will join Lindner as the team’s second MLS board representative. Other women serving on the 58-person board include Dee Haslam (Columbus Crew SC), and Hall Capital Partners founder Katie Hall (San Jose Earthquakes). The St. Louis expansion franchise, which will begin play in 2022, is majority-owned by women.Whitman has shown prior interest in MLS clubs. Back in 2017, she was a part of the group looking to bring a club to Sacramento but later left the bid. Whitman is also an investor in the esports franchise Immortals.To contact the reporters on this story: Scott Soshnick in New York at email@example.com;Eben Novy-Williams in New York at firstname.lastname@example.orgTo contact the editors responsible for this story: Nick Turner at email@example.com, ;Tom Giles at firstname.lastname@example.org, John J. Edwards IIIFor more articles like this, please visit us at bloomberg.com©2019 Bloomberg L.P.
On a conference call with analysts and investors, Dell noted weakness in China, said memory prices are likely heading higher, and cautioned that (INTC) (INTC) processors were in short supply—a comment echoed by (HPQ) (HPQ) on its own call. A quick review of the facts: For its fiscal third quarter, ended Nov. 1, Dell posted revenue of $22.8 billion, up 2% year over year, but slightly below the Wall Street consensus forecast of $23.04 billion. On the call, CFO Thomas Sweet said Dell is trimming its forecast of revenue for fiscal 2020 to a range of $91.8 billion to $92.5 billion, down from $93 billion to $94.5 billion, and below the $93.5 billion Wall Street expected.
HP's (HPQ) fourth-quarter fiscal 2019 results benefit from growing demand in the Commercial PC market. However, soft consumer market and weakness in the Printing business are negatives.
President Donald Trump said on Tuesday the United States was in the "final throes" of work on an initial trade deal with China, fueling hopes that an agreement could be reached before the end of the year. The three major U.S. stock indexes have closed at record highs in five of the past eight sessions on expectations of a trade truce and a largely upbeat third-quarter earnings season. "There's that drumbeat about an impending trade deal and that's going to keep stocks moving higher," said Kim Forrest, chief investment officer at Bokeh Capital Partners in Pittsburgh.
The PC giants said they now expect Intel CPU shortages to continue into 2020, with Dell indicating costlier CPUs are now also affected. That could spell a bigger opening for AMD.
U.S. stock futures rise after Donald Trump says negotiators are close to reaching an initial trade agreement between the U.S. and China; Deere reports earnings; HP Inc. beats earnings forecasts and remains quiet on Xerox's takeover bid.