Cash
In Xerox's initial acquisition offer (which was disclosed by HP), Xerox said that "we will fund the cash component of our offer with a combination of cash on hand and new financing to support the transaction and the new combined company. We have been engaged in ongoing discussions with Citi on the transaction financing and they have provided to us a highly confident letter evidencing their certainty in arranging financing for the transaction." Xerox has proposed to pay $22 a share for HP--$17 per share in cash and the rest in Xerox stock.
As of Xerox's most recent quarter, ended Sept. 30, the company reported having $922 million in cash and cash equivalents. For HP's most recent quarter, ended July 31, the company disclosed having more than five times that amount--$4.92 billion in cash and cash equivalents.
Meanwhile, for Xerox's most recent three quarters, the company reported $895 million in net cash provided by operating activities. HP disclosed $4.07 billion in net cash provided by operating activities during its latest three quarters.
