Xerox prepares to take HP buyout bid hostile

[BENGALURU] Xerox Corp said on Tuesday it was planning to take the US$33.5 billion buyout bid directly to HP Inc shareholders after the personal computer maker refused to open its books for deal talks.

"We plan to engage directly with HP shareholders to solicit their support in urging the HP Board to do the right thing and pursue this compelling opportunity," Xerox said in a letter to HP's board.

HP on Sunday rejected Xerox's US$22 per share offer that involves US$17 in cash and 0.137 Xerox share for each HP share, saying that the offer "significantly undervalues HP."

Last week, Xerox threatened to take its bid hostile, if HP did not agree to a "friendly" discussion and open its books before Monday. Xerox made the offer to HP, a company more than three times its size, on Nov 5.

After rebuffing the initial offer, HP said it was open to exploring a bid for the US printer maker, stating that it recognised the potential benefits of a consolidation.

REUTERS