(Reuters) – Xerox Holdings Corp raised its offer to buy HP Inc by $2 to $24 per share on Monday, following several rejections of its previous buyout offer by the PC maker.
The company logo for Xerox is displayed on a screen on the floor of the New York Stock Exchange (NYSE) in New York, U.S., March 11, 2019. REUTERS/Brendan McDermid
Xerox said its latest offer comprises $18.40 in cash and 0.149 Xerox shares for each HP share — valuing the company at about $35 billion — and that it plans to launch a tender offer on or around March 2.
HP shares rose nearly 3% to $22.31, while Xerox was up about 1%.
The U.S. printer maker first made a $33.5 billion cash-and-stock offer for HP, a company more than three times its size, in November. HP’s board had then rejected the offer, saying it significantly undervalued the company.
“This bid increase puts more pressure on Xerox to extract costs as a combined entity. I’d look for HP to question the economics of the synergies after Xerox…
Source Reuters Tech News