HP rejects raised offer from Xerox

HP Inc has rejected a sweetened, unsolicited offer from Xerox, arguing that it "meaningfully undervalues" the company.

The US personal computer maker said on Thursday that the offer failed "to reflect the full value of HP’s assets and its standalone strategic and financial value creation plan".

Xerox initially offered $22 per share in cash and shares for HP, but this was lifted to $24 per share in February.

Chip Bergh, chair of HP’s board of directors, said: "Our message to HP shareholders is clear: the Xerox offer undervalues HP and disproportionately benefits Xerox shareholders at the expense of HP shareholders.

"The Xerox offer would leave our shareholders with an investment in a combined company that is burdened with an irresponsible level of debt and which would subsequently require unrealistic, unachievable synergies that would jeopardise the entire company."

HP pointed out that Xerox does not have experience operating businesses in the sectors in which it operates, including within personal systems, home printing, and 3D and digital manufacturing. In addition, it noted that Xerox has been experiencing falling sales and said the recent sale of its interest in the Fuji-Xerox joint venture raises "significant" concerns about its future position.