HP Inc. says its board has rejected a roughly $33.5 billion takeover offer from Xerox.
The Palo Alto, California-based company said Sunday that the cash and stock deal undervalues its business and its board cited concerns about “outsized” debt levels should the companies combine.
HP, which makes computers and printers, said it recognizes the potential benefits of consolidation and remains open to exploring other options to combine with Xerox Holdings Corp.
Both companies have faced difficulties as the demand for printed documents and ink have waned.
Xerox offered earlier this month to give HP shareholders $17 in cash and a fractional share of Xerox stock for each share they held in HP. They put the total value of the deal at $33.5 billion. If the deal had been completed, HP shareholders would own approximately 48% of the combined company.
HP rejected the offer, saying that it has “great confidence” in its ability to deliver long-term value. Its board also said it had “significant questions” about the trajectory of Xerox’s business and prospects, particularly given a recent decline in its revenue.
A representative for Xerox, which is based in Norwalk, Connecticut, could not be reached immediately for comment.
Before you consider Xerox, you'll want to hear this.
MarketBeat keeps track of Wall Street's top-rated and best performing research analysts and the stocks they recommend to their clients on a daily basis. MarketBeat has identified the five stocks that top analysts are quietly whispering to their clients to buy now before the broader market catches on... and Xerox wasn't on the list.
While Xerox currently has a "Sell" rating among analysts, top-rated analysts believe these five stocks are better buys.
View The Five Stocks Here
Wondering where to start (or end) with AI stocks? These 10 simple stocks can help investors build long-term wealth as artificial intelligence continues to grow into the future.
Get This Free Report