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Xerox Is Considering Nominating 11 To HP Board: Report
Xerox could use a vote for their slate of directors to gauge HP shareholder interest in the deal, the Wall Street Journal reported citing “people familiar with the matter.”
Xerox could make as many as 11 nominations to the HP Inc. board of directors as it mulls whether to push forward with a hostile takeover bid it launched last year, the Wall Street Journal reports.
Citing people familiar with the matter, Xerox must decide whether to put forward its candidates for the summer meeting by Friday, according to The Wall Street Journal. Xerox could use a vote for their slate to gauge HP shareholder interest in the deal.
Xerox made what amounted to a $22 a share offer to buy the much larger HP on Nov. 5, Their combined cash and stock deal would give HP $17 per share, plus .137 in Xerox stock for each share of HP.
Talks between the two companies have broken down after HP rejected that deal, and Xerox threatened a proxy war. As the two sides traded public letters, HP said it doubted Xerox’s ability to finance their offer.
Xerox responded on Jan. 6 that it won financial backing from three banks -- Citigroup Inc., Mizuho Financial Group and Bank Of America — to finance $24 billion of the $32 billion proposed deal.
In his letter announcing the financing Xerox CEO John Visentin said Xerox had “constructive” talks with some of HP’s largest shareholders. While not revealing any by name, Visentin claims multiple shareholders support the two companies coming together.
“It remains clear to all of us that bringing our companies together would deliver substantial synergies and meaningfully enhanced cash flow that could, in turn, enable increased investments in innovation and greater returns to shareholders,” he wrote.
In turn, HP said they were unmoved by the gesture.
"Your letter dated January 6, 2020 regarding financing does not address the key issue – that Xerox's proposal significantly undervalues HP – and is not a basis for discussion," HP CEO Enrique Lores and Board Chair Chip Bergh said in the letter addressed to Visentin.