|Bid||22.13 x 2200|
|Ask||0.00 x 2200|
|Day's Range||21.87 - 22.17|
|52 Week Range||15.93 - 24.09|
|Beta (5Y Monthly)||1.50|
|PE Ratio (TTM)||10.68|
|Earnings Date||Feb 24, 2020 - Mar 01, 2020|
|Forward Dividend & Yield||0.70 (3.21%)|
|Ex-Dividend Date||Mar 08, 2020|
|1y Target Est||20.86|
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.”
(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 email@example.comTo contact the editors responsible for this story: Liana Baker at firstname.lastname@example.org, 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 Inc. (HPQ) today confirmed that Xerox Holdings Corporation has announced its intent to nominate 11 candidates to stand for election to the Company’s Board of Directors at the HP’s 2020 Annual Meeting of Stockholders (the “2020 Annual Meeting”). Xerox has previously submitted an unsolicited proposal to acquire HP, that the HP Board unanimously rejected. The HP Board of Directors is committed to serving the best interests of all HP shareholders and to pursuing the most value-creating path.
"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.
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.
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.
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 email@example.com;Scott Deveau in New York at firstname.lastname@example.org;Nico Grant in San Francisco at email@example.comTo contact the editors responsible for this story: Jillian Ward at firstname.lastname@example.org, ;Liana Baker at email@example.com, 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.
(Bloomberg Opinion) -- Five years ago, in a routine display of trash talking, Tesla Inc.’s Elon Musk made a now infamous quip about how hard it is to manufacture automobiles.“Cars are very complex compared to phones or smartwatches,’’ he told German newspaper Handelsblatt. “You can’t just go to a supplier like Foxconn and say: Build me a car.”He may be proven wrong. Foxconn Technology Group, through its Hon Hai Precision Industry Co. unit, will establish a joint venture with Fiat Chrysler Automobiles NV, the Taiwanese company said in an exchange filing Thursday. While not yet signed, they expect their 50-50 enterprise will “develop and manufacture electric vehicles and engage in IOV (internet of vehicles) business,” referencing a growing ecosystem of connected cars that share location, weather, traffic and vehicle information.Hon Hai would be responsible for design, components and supply chain management, Chairman Young Liu told Debby Wu of Bloomberg News. Foxconn might not actually do final assembly, he said.If you’ve ever visited Foxconn’s global headquarters on the outskirts of Taipei, you’d know that the prospect of the company designing cars is disconcerting. It truly is one of the ugliest office buildings in the world. So let’s hope Fiat Chrysler takes the driver’s seat on that.However, components, supply chain management, and manufacturing are right up Foxconn’s alley. The company makes most of Apple Inc.’s iPhones and iPads, as well as a lot of the electronics that go into cars, including Teslas.Tesla’s then-head of vehicle engineering, Doug Field, whose resume includes Apple and Ford Motor Co., in February 2018 subtly dissed the Foxconn-Apple relationship. “The model at Foxconn was very different” from Tesla, because the Taiwanese company uses manual labor to achieve economies of scale quickly. The iPad is a product “whose simplicity is orders of magnitude below ours.” Field returned to Apple later that year.Let’s agree, cars are indeed more complicated than tablets or smartphones. But I’ll say that there’s no way Elon Musk could churn out half a million handsets per day, consistently, with quality and on time.By contrast, Foxconn, because of the reasons Field outlined, could be well placed to leverage its 40 years of experience in manufacturing, scale and manual processes to get Fiat Chrysler to mass production of electric vehicles quicker than almost anyone in the world. After all, Foxconn’s giant workforce and scale mean it’s the only company that can churn out 5 million iPhones a week at launch every year for the past decade.With scale comes not just cost advantages but supply-chain leverage, an important element when you’re hunting down parts that may be in short stock. Batteries, for example, have been a bottleneck for Tesla deliveries in the past. But when your client list includes Apple, Dell Inc., HP Inc. and a dozen other companies that need batteries by the container, suppliers are likely to put you higher on the priority list. Given that they’re the largest cost of an electric vehicle, solving both the supply problem and then using scale to force costs down could give Foxconn and Fiat Chrysler an edge.Having electric vehicles more readily available and delivered on time might even take the gloss off the cult of Tesla, which is driven in part by the difficulty of getting your hands on one. Yet Fiat Chrysler needs to ensure that Foxconn doesn’t mess it up. It’s known to be domineering in partnerships, with an obsession toward efficiency and cutting costs, rather than value-added branding. Its venture with HMD Global Oyj to revive the Nokia name looked promising until Foxconn executives started pulling rank, overruling those who truly knew how to design and market phones. Many of the talented members of the consortium left and the brand is unlikely to see the revival that many had expected.Sure, Fiat Chrysler is taking a risk by betting on Foxconn. But the U.S.-Italian car company doesn’t have much to lose, and knows that it has little time to waste. Chief Executive Officer Mike Manley is hoping to merge with France’s PSA Group, and told investors in October that electrification could happen on a grand scale after that.It’s also likely to join a self-driving car venture being set up by BMW AG and Daimler AG, Bloomberg reported this month. Such plans necessitate the kind of electric vehicle technologies it doesn’t currently have. Foxconn doesn’t, either, but between them there’s every chance the two companies can develop or acquire what’s needed.If Foxconn really wants to make it in electric vehicles, it will need to learn from Fiat Chrysler the importance of good design, marketing savvy, and brand mystique. In other words, a little bit of Elon Musk.Just not too much.To contact the author of this story: Tim Culpan at firstname.lastname@example.orgTo contact the editor responsible for this story: Patrick McDowell at email@example.comThis column does not necessarily reflect the opinion of Bloomberg LP and its owners.Tim Culpan is a Bloomberg Opinion columnist covering technology. He previously covered technology for Bloomberg News.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.
PALO ALTO, Calif., Jan. 16, 2020 -- The HP Inc. board of directors has declared a cash dividend of $0.1762 per share on the company’s common stock. The dividend, the second in.
(Bloomberg) -- Mobile app spending and usage hit a record in 2019 and show no signs of tapering off this year as faster cellular connections and more big-name video streaming services come online, industry tracker App Annie says.China should again prove the biggest driver of consumption on everything from video streaming to games operated by social media giant Tencent Holdings Ltd., propelling spending 23% higher to $380 billion this year, App Annie researchers said. China made up half of all consumer spending in 2019 and was among the fastest-growing markets when it came to time spent on a mobile device. The global average is now 3.7 hours per person per day, according to the researchers.Among the headline grabbers of 2019 was ByteDance Inc.’s video-sharing platforms including TikTok, which racked up 14.5 billion hours of time watched and grew its audience 200% in the fourth quarter. Nine out of every 10 minutes spent in the app have come from China, App Annie said. Google’s YouTube Music racked up even more impressive numbers, growing worldwide active users 870% over the 24 months ending Dec. 19.“Year 2020 will mark the beginning of a mobile-first decade,” said Cindy Deng, managing director for Asia-Pacific at App Annie. “It’s imperative that brands start to adapt their strategy to this growing generation, or risk being left behind.”Tinder, Netflix and Tencent Lead Record-Breaking Year for AppsIn the past year, mobile apps accumulated $120 billion of global consumer spending, with games accounting for 72% of that. Advertising brought in $190 billion, said App Annie, forecasting the number to grow to $240 billion this year.Generation Z -- the cohort born after 1997 for whom mobile has become the first screen -- is fueling the surge. Income from games continued to grow in 2019, when 1,121 mobile titles brought in more than $5 million in earnings, up from 959 two years prior. 139 games went beyond $100 million in revenue for the year, up from 88 in 2017.But non-gaming apps grew even faster, led primarily by subscription-based revenue models and a rabid appetite for entertainment.In the U.S., App Annie found Apple Inc.’s iOS platform commanded 79% of non-gaming app revenue versus Google’s Android claiming 21%, with the majority on both platforms coming from subscriptions to the likes of Tinder and Netflix Inc.The use of mobile finance apps doubled between 2017 and 2019, with users accessing such services 1.1 trillion times in the past year. This has been driven by mobile-first countries like China, India and Brazil, while Indonesia, Japan and Russia are growing fastest when it comes to monthly active users. App Annie analysts said fintech apps designed specifically for mobile screens, such as Monzo or PayPay, were outperforming traditional banks because of their greater ease of use.Entertainment apps also saw a 120% rise in use over the past two years, and in 2019 Netflix was joined by Apple TV+ and Walt Disney Co.’s Disney+ subscription streaming offerings. The competition will intensify as more mobile-centric services emerge: former HP Inc. Chief Executive Officer Meg Whitman and film veteran Jeffrey Katzenberg’s Quibi, for instance, offers different video perspectives depending on how a phone is held.Streaming content looks likely to be the big driver for the adoption of 5G networking among mobile users, as App Annie found it growing universally around the globe. On Android phones over the past two years, India streamed nearly 80% more, France and Japan were up more than 50% and the U.S., Canada, and Indonesia all grew by more than 40%. Data consumption on streaming sports was up 80% over the same period, indicating a bandwidth-hungry market that’s far from hitting its consumption ceiling.To contact the reporter on this story: Vlad Savov in Tokyo at firstname.lastname@example.orgTo contact the editors responsible for this story: Edwin Chan at email@example.com, Vlad SavovFor 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.