The HP Board of Directors has turned its back on Xerox. In a communication published on Thursday, he said that “Xerox's proposal significantly undervalued HP”, so that the dome rejects the offer of 33,000 million dollars.
Xerox insisted a few days ago that he already had a way to finance the acquisition of his great competitor. He then held the company that had a credit line worth 24,000 million dollars granted by Citigroup, Mizuo Financial Group and Bank of America.
Given this information, HP has taken the step by pointing out that the Xerox communication assuring its financing, pointing out that “it is not the key issue”, which they identify as the economic offer.
Icahn, investor of both, presses for the approval of the agreement
After Xerox's first economic offer, which took place in November, HP refused to offer it either because it was considered too low or because of its doubts when it came to raising the cash share and if the combined company could handle the amount of debt that He would probably drive, since then Xerox barely had an informal promise of funding.
Xerox has also argued that the two companies, which operate in a depressed printing industry, could generate synergies of 2 billion dollars (1.8 billion euros) by combining its forces. Previously, Xerox offered $ 17 in cash and 0.137 of its shares for each HP share, which amounts to $ 22 per share. Investor Carl Icahn, with a significant percentage in the two companies in Liza, has already shown himself in favor of the agreement.
Xerox mainly manufactures large printers and photocopiers and has a stock market valuation of about 7.7 billion, while HP primarily sells smaller printers and printing supplies and capitalizes about 30 billion in the stock market.