|Bid||20.00 x 4000|
|Ask||20.70 x 4000|
|Day's Range||20.44 - 20.75|
|52 Week Range||15.93 - 24.09|
|Beta (3Y Monthly)||1.50|
|PE Ratio (TTM)||9.89|
|Forward Dividend & Yield||0.70 (3.44%)|
|1y Target Est||N/A|
Xerox Holdings has begun meeting with investors to persuade them to support the company’s recent $22-a-share takeover bid for HP—asserting among other things that the offer is actually worth $31 a share.
The presentation, addressed to HP shareholders, comes two weeks after Xerox said it was planning to take its $33.5 billion buyout bid directly to HP shareholders after HP refused to open its books for due diligence. Xerox said revenue growth of $1 billion to $1.5 billion can be achieved through a three-year roadmap, which involves cross-selling products and streamlining operations. The combined company will have a free cash flow of more than $4 billion in the first year before any synergies, Xerox added.
(Bloomberg) -- Xerox Holdings Corp. believes its proposed HP Inc. takeover would create as much as $1.5 billion in potential revenue growth, according a presentation to HP’s shareholders made public Monday.The printer maker outlined its case for a tie-up between the companies, arguing the combined firm will be worth about $31 a share to HP investors on a pro-forma basis. The merged entity will generate more than $4 billion in free cash flow in the first year before taking any synergies into account, according to the presentation, confirming a report in Bloomberg News.“The value of the transaction goes beyond economics. In consolidating industries, first movers not only win but also have an opportunity to reshape the competitive landscape in an enduring way,” John Visentin, Xerox’s chief executive officer, said in the presentation.Xerox has already said it believes the combination would create roughly $2 billion in synergies, which it argues could be achieved in 24 months. Those savings could be achieved through streamlining their operations by reducing the number of suppliers the combined company would use, cost reductions on information technology and reducing its real estate footprint, among other measures.The presentation for HP shareholders goes further, saying a merger of their operations would allow cross-selling and a unified platform for clients. That could yield an estimated $1 billion to $1.5 billion revenue growth, Xerox said.To get to this amount, Xerox says it has a three-year roadmap that includes generating $540 million to $750 million from pitching complementary products to existing clients, $50 million to $100 million from manufacturing and distribution efficiencies and $350 million to $400 million from integrating HP products into Xerox’s office-as-a-service offerings.It also said there could be $300 million to $400 million in growth from Xerox’s services and software and $150 million to $300 million from offering Xerox’s leasing options to HP customers. A representative for Xerox declined to comment, while a representative for HP couldn’t immediately comment.HP’s shares were little-changed at $20.50 at 9:58 a.m. Monday, while Xerox rose less than 1% to $37.99.HP last month rejected an unsolicited, cash-and-stock offer from Xerox worth $22 per share, arguing it undervalued the company and citing concerns about the health of its smaller rival’s business. Xerox said it planned to take its case straight to HP’s shareholders after the Palo Alto-based hardware maker refused to grant the mutual due diligence it requested.The presentation to be released publicly Monday is the first step in that effort, and Visentin will start meeting some HP shareholders this week to sell the plan. Xerox has asked for three weeks of mutual due diligence in order to validate its case for a tie-up, noting in the presentation it expects no financing conditions and no regulatory risks.JPMorgan Chase & Co. analysts said this month that a merger carried risks and could cause some near-term downside in both stocks. Their Dec. 3 note added that the deal would leave investors more exposed to “a declining printer business.”Activist investor Carl Icahn, who owns as stake in both companies, called on HP last week to push ahead with the talks, calling the deal a “no-brainer.” He accused the company’s directors and management of seeking to preserve their own jobs instead of protecting shareholders’ interests. He argued HP’s standalone plans amount “to little more than rearranging the deck chairs on the Titanic.”Icahn is Xerox’s largest holder with a nearly 11% stake in the Norfolk, Connecticut-based company. He also owns a 4.2% of HP, making him its fifth-largest holder, according to data compiled by Bloomberg.(Updates with details of presentation starting in first paragraph)To contact the reporter on this story: Scott Deveau in New York at firstname.lastname@example.orgTo contact the editors responsible for this story: Liana Baker at email@example.com, Fion Li, Ben ScentFor more articles like this, please visit us at bloomberg.com©2019 Bloomberg L.P.
Alex Eule and Eric Savitz discuss the troubles of legacy tech firms and whether they can reinvent themselves.
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 firstname.lastname@example.orgTo contact the editors responsible for this story: Liana Baker at email@example.com, 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 firstname.lastname@example.org;Eben Novy-Williams in New York at email@example.comTo contact the editors responsible for this story: Nick Turner at firstname.lastname@example.org, ;Tom Giles at email@example.com, John J. Edwards IIIFor more articles like this, please visit us at bloomberg.com©2019 Bloomberg L.P.