|Bid||34.79 x 1100|
|Ask||34.83 x 1400|
|Day's Range||34.44 - 35.09|
|52 Week Range||24.02 - 39.47|
|Beta (5Y Monthly)||1.77|
|PE Ratio (TTM)||12.26|
|Earnings Date||Jan 26, 2020 - Jan 30, 2020|
|Forward Dividend & Yield||1.00 (2.82%)|
|Ex-Dividend Date||Dec 29, 2019|
|1y Target Est||42.67|
HP is promising bigger stock buybacks as it tries to hold off Xerox’s hostile bid. Meanwhile, Xerox could still raise its offer. Either way, investors win.
The printer and PC company said it has “numerous opportunities” to drive sustainable long-term value, including increased share repurchases and “value-creating M&A.”
In Xerox's latest effort to get HP to bend to its will and combine the two companies, it announced its intent today to try to replace the entire HP board of directors at the company's stockholder's meeting in April. Xerox and HP have been playing a highly public game of tit for tat in recent months. Xerox wants very much to combine with HP, and offered $34 billion, an offer HP summarily rejected at the end of last year.
(Bloomberg) -- Xerox Holdings Corp. said it intends to nominate 11 directors to replace the board of HP Inc. after the personal-computer maker refused to engage in takeover talks, according to a statement Thursday.The iconic printer maker hasn’t increased its $22-a-share takeover offer after HP rejected its proposal, which it argues undervalues the company. Instead, Xerox will seek to replace HP’s entire board through a proxy fight to push the merger through.The nominees include former senior executives from dozens of companies including Aetna Inc., United Airlines Holdings Inc. and Novartis AG.“HP shareholders have told us they believe our acquisition proposal will bring tremendous value, which is why we lined up $24 billion in binding financing commitments and a slate of highly qualified director candidates,” said John Visentin, vice chairman and chief executive officer of Xerox.Xerox filed its slate ahead of a Friday deadline for board nominations. The move could potentially be a precursor to Xerox taking its offer directly to shareholders through a tender offer at the current offer price or a premium if HP continues to rebuff its efforts, according to people familiar with the matter. No decision has been made on whether to pursue a tender offer, the price it would be put forth at, or when it would do so, the people said, asking not to be identified because the matter is private.The push to replace the board marks an escalation of the simmering tensions between the two hardware giants that have withered in a world increasingly driven by software. Xerox has argued the tie-up would revive both companies and unlock about $2 billion in synergies.“These nominations are a self-serving tactic by Xerox to advance its proposal, which significantly undervalues HP and creates meaningful risk to the detriment of HP shareholders,” HP said in a statement.HP said that it would review Xerox’s nominees and respond in due course. It also said that it was committed to serving the best interests of all shareholders, and that it had many avenues that it could pursue to create value. Those efforts are not dependent on a combination with Xerox, it said.Activist shareholder Carl Icahn, who owns about 11% of Xerox and has a 4.3% stake in HP, has pushed for the tie-up.HP said Thursday it believed Xerox’s proposal to acquire HP was being driven by Icahn. The billionaire has considerable influence over Xerox because he is its largest shareholder, the role he played in appointing Xerox’s CEO, who was a former consultant to Icahn, and the ties he has to members of the board, including its chairman, who is also the chief executive officer of Icahn Enterprises, HP said.“Due to Mr. Icahn’s ownership position, he would disproportionately benefit from an acquisition of HP by Xerox at a price that undervalues HP,” the company said, adding that his interests were not aligned with those of other HP shareholders.A representative for Icahn wasn't immediately available for comment.HP’s board currently has 12 members. Dion Weisler, the former chief executive officer of the company, has said he would step down at the next annual general meeting, which the company said would reduce the board size to 11. Its last annual meeting was on April 23.HP in November rebuffed an unsolicited, cash-and-stock offer from Xerox, citing concerns about the financial health of its smaller rival, which has experienced declining annual revenue since 2012.HP’s board said it was open to exploring a merger, but believed the offer undervalued the company.Xerox announced Jan. 6 that it had arranged a $24 billion loan with a group of banks to finance the takeover. HP and its advisers had questioned Xerox’s ability to raise the money for the deal.Following the financing announcement, HP said it believed the offer still undervalued the company.Xerox’s director nominees are:Betsy Atkins, CEO of Baja Corp.George Bickerstaff, co-founder and managing director of M.M. Dillon & Co.Carolyn Byrd, CEO of GlobalTech Financial.Jeannie Diefenderfer, who spent 28 years at Verizon.Kim Fennebresque, who was CEO of Cowen Group for nine years.Carol Flaton, who has served as a managing director at AlixPartners.Matthew Hart, who most recently served as president and chief operating officer of Hilton Hotels until the buyout of Hilton by Blackstone in 2007.Fred Hochberg, who was most recently the chairman and president of the Export-Import Bank of the United States during the Obama administration.Jacob Katz, who was chairman of Grant Thornton.Nichelle Maynard-Elliott, who most recently served as executive director of mergers & acquisitions for Praxair Inc.Thomas Sabatino, Jr. who most recently served as executive vice president and general counsel of Aetna Inc.Citigroup Inc. is acting as Xerox’s financial advisor, and King & Spalding LLP is providing legal counsel to Xerox. Willkie Farr & Gallagher LLP is providing legal counsel to Xerox’s independent directors.(Updates with additional company comments starting in paragraph eight)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 Monks, Molly SchuetzFor more articles like this, please visit us at bloomberg.comSubscribe now to stay ahead with the most trusted business news source.©2020 Bloomberg L.P.
HP Inc. said Thursday Xerox Corp. slate of board candidates is a "self-serving" tactic from billionaire investor Carl Icahn to push an acquisition that "significantly undervalues" the company. "We believe that Xerox's proposal and nominations are being driven by Carl Icahn, and his large ownership position in Xerox means that his interests are not aligned with those of other HP shareholders," HP said in a statement. "Due to Mr. Icahn's ownership position, he would disproportionately benefit from an acquisition of HP by Xerox at a price that undervalues HP." Icahn owns significant stakes in both HP and Xerox. Earlier Thursday, Xerox proposed a slate of 11 board members to replace HP's board. A proxy battle has been brewing ever since Xerox offered $33 billion for HP, which the company rebuffed.
HP (ticker: HPQ) has repeatedly rejected a recent $22-a-share takeover bid from Xerox (XRX) as too low. “HP shareholders have told us they believe our acquisition proposal will bring tremendous value, which is why we lined up $24 billion in binding financing commitments and a slate of highly qualified director candidates,” Xerox CEO John Visentin said in statement. Xerox has asserted that a combination of the two companies would yield considerable cost synergies, although their product sets have limited overlap.
"HP shareholders have told us they believe our acquisition proposal will bring tremendous value, which is why we lined up $24 billion in binding financing commitments and a slate of highly qualified director candidates," John Visentin, Xerox's CEO, said on Thursday. HP, which has 12 board members, responded to Xerox's decision to nominate candidates by again saying the bid undervalues the company. The company added that the move to nominate members to its board was being "driven" by activist investor Carl Icahn, who has a 4.2% stake in HP and a 10.9% stake in Xerox.
Xerox Holdings Corporation announced it has provided notice to HP Inc. that it intends to nominate 11 independent candidates to replace HP’s Board.
Watching the fight between Xerox and HP can feel a lot like watching a pair of bickering old-timers. The veteran tech companies have been trading barbs since November, when Xerox first went public with a $33bn takeover bid for its much larger rival printer maker. On Thursday Xerox launched a fresh attack.
Xerox said Thursday it informed HP Inc. that it intends to nominate a slate of 11 candidates to replace the printer company's board as the copy machine maker pushes its hostile $33 billion takeover bid. The slate will be nominated at HP's annual shareholders meeting, Xerox said. "These nominations are a self-serving tactic by Xerox to advance its proposal, that significantly undervalues HP and creates meaningful risk to the detriment of HP shareholders," HP said in a statement.
The 11 nominations from Xerox, which is dwarfed in size by HP, include current and former investment bankers and consultants, as well as former executives from Verizon, Hilton and Novartis. from Xerox, warning that it has “significant concerns” about the health of Xerox’s business and is sceptical of its rival’s ability to find $2bn of cost cuts if the two companies were to combine. Xerox in recent weeks bought a small stake in HP, giving it the right to nominate directors to the HP board, according to a person briefed on the matter.
Xerox has been knocking on HP’s door since November, when it attempted to buy HP for $33 billion, or $22 a share in cash and stock.
The U.S.-based printer maker bought a small stake in HP in recent weeks, the newspaper reported, citing sources. The stake would give Xerox the right to nominate directors for elections to be held at the HP's annual meeting this summer, the report said, adding that the deadline to nominate directors is Friday, and Xerox could still decide to not follow through with the nominations. In November last year, Xerox made the $33.5 billion cash-and-stock offer to HP, a company more than three times its size.
(Bloomberg) -- Xerox Holdings Corp. is preparing to seek control of HP Inc.’s board after the personal-computer maker rejected efforts to negotiate an acquisition, according to people familiar with the matter.The iconic printer maker is expected to submit at least a majority slate of directors ahead of a Friday deadline for nominations to the 12-member board, said the people, who asked not to be identified because the matter is private.Xerox has no plans at this point to increase its bid for HP, the people said. The company is still finalizing its plans and may choose to run a full slate to replace the entire board, the people said.Xerox executives have argued the tie-up would revive both companies, which have been struggling, with products that complement their hardware businesses. A deal would unlock about $2 billion synergies, they’ve said.Representatives for Xerox and HP declined to comment.Xerox’s plans were first reported by Dow Jones. If the company pushes ahead with a formal proxy fight, it would represent a new level of hostility between two hardware giants that have withered in a world increasingly driven by software.Xerox ShrinksXerox’s machines revolutionized the way businesses run, but the shift away from printed documents has dented the Norwalk, Connecticut-based company, which has been declining in size for almost a decade.HP, once the world’s largest technology company by revenue, has taken dramatic actions to remain afloat, including splitting from its server, software and services arms in 2015.The company, based in Palo Alto, California, has grown modestly as it contends with a stagnant personal computer market. Still, HP believes it would be better off with a restructuring plan it announced last year than as part of Xerox.Offer RejectedHP in November rebuffed an unsolicited, cash-and-stock offer from Xerox worth an estimated $22 per share, saying it undervalued the company. HP also cited concerns about the financial health of its smaller rival, which has experienced declining annual revenue since 2012.HP’s board said it was open to exploring a merger, but believed the offer price undervalued the company. Activist shareholder Carl Icahn, who owns about 11% of Xerox and has a 4.3% stake in HP, has pushed for a tie up between the companies.Four of the seven Xerox board seats are held by representatives of Icahn and an allied shareholder. If Xerox took control of HP’s board, the two could, in effect, control both companies.Xerox announced Jan. 6 that it had arranged a $24 billion loan with a group of banks to finance the takeover. HP and its advisers had earlier questioned Xerox’s ability to raise the money needed to handle the deal.Following the financing announcement, HP said it believed the offer still undervalued the company.(Updates with details of merger efforts starting in sixth paragraph)\--With assistance from Fion Li.To contact the reporters on this story: Ed Hammond in New York at firstname.lastname@example.org;Scott Deveau in New York at email@example.com;Nico Grant in San Francisco at firstname.lastname@example.orgTo contact the editors responsible for this story: Jillian Ward at email@example.com, ;Liana Baker at firstname.lastname@example.org, Andrew Pollack, Michael HythaFor more articles like this, please visit us at bloomberg.comSubscribe now to stay ahead with the most trusted business news source.©2020 Bloomberg L.P.
Xerox Holdings Corp is preparing to nominate as many as 11 directors to HP Inc's board, the Wall Street Journal reported on Tuesday, as the company seeks to push its $33.5 billion takeover offer for the personal computer maker. In recent weeks, Xerox has bought a small stake in HP, the newspaper said https://www.wsj.com/articles/xerox-to-nominate-as-many-as-11-directors-to-hp-board-11579661836?mod=searchresults&page=1&pos=1, citing sources. The small stake would give Xerox the right to nominate directors for elections to be held at the HP's annual meeting this summer, it added.
Xerox Holdings Corporation will host a live audio webcast at 8 a.m. ET on Tuesday, Jan. 28, to discuss 2019 fourth-quarter and full-year results.
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The absurd $33 billion bid by Xerox Holdings Corp. for the much larger HP Inc. should not be happening, but it looks like the storied tech giant could be heading for another proxy fight.
(Bloomberg Opinion) -- Xerox Holdings Corp. is best known for inventing the modern photocopier. When it comes to the company’s $33 billion attempt to acquire HP Inc., Chief Executive Officer John Visentin needs to do more than simply copy and repeat the same terms.It has been almost two months since larger rival HP rejected Xerox’s initial bid. Since then, little in the substance of the offer has changed. Xerox has assuaged some of HP’s concerns about financing by obtaining bridge loan commitments for the cash part of the bid. But the fundamental offer remains the same: $17 in cash and 0.137 of a Xerox share for each HP share, for a total value of about $22 a share.Xerox is trying other methods to push a deal through. It has solicited support from HP’s shareholders. Carl Icahn, the activist who’s Xerox’s biggest investor and helped appoint the current board, has taken a stake in HP to build momentum. And, perhaps most significant, the possibility of a proxy fight is looming in which the Xerox camp would submit a slate of directors who are more likely to favor the existing deal terms to replace the current HP board.The problem with that approach comes down to one factor: time. HP announced a restructuring program in October that will cut as much as 16% of its workforce. The longer a proxy battle endures, the longer HP has to carry out its turnaround plan. If it proves successful, its share price might recover, strengthening the Palo Alto, California-based company’s negotiating position.So far, HP has refused to engage in formal discussions. Xerox’s priority must be to change that. The first rule of negotiating is usually to create a deal that both parties feel good about. Were Visentin to sweeten the offer and value HP closer to $35 billion, it would give his counterpart at HP, Enrique Lores, reason to come to the negotiating table. After all, his most recent rejection of the Xerox approach focused solely on the price.How such an increase would be funded is the tricky part. More cash might increase debt beyond investment-grade levels. And even a small bump in the equity component would result in HP shareholders owning the majority of the new entity: Offering 0.18 Xerox share each and the same amount of cash would value HP at $35 billion but give its shareholders 55% ownership. Some version of the latter option seems more viable. HP is by far the bigger company and has previously discussed an acquisition of Xerox.HP could still decide to buy back stock. Repurchasing 20% of its shares at $23 each would generate just as much short-term value for investors and cost less than $7 billion; HP has plenty of capacity to raise the debt to fund such a move. But Lores has not yet invoked that option, suggesting that he perceives some strategic value in a tie-up. That might give Visentin reason for hope. But to realize it, he needs to dig a little deeper.To contact the author of this story: Alex Webb at email@example.comTo contact the editor responsible for this story: Daniel Niemi at firstname.lastname@example.orgThis column does not necessarily reflect the opinion of the editorial board or Bloomberg LP and its owners.Alex Webb is a Bloomberg Opinion columnist covering Europe's technology, media and communications industries. He previously covered Apple and other technology companies for Bloomberg News in San Francisco.For more articles like this, please visit us at bloomberg.com/opinionSubscribe now to stay ahead with the most trusted business news source.©2020 Bloomberg L.P.