HP has been receiving endless acquisition offers from the past few years but right now, they seem to be in no mood to lose their independence. The tech giant has lately rejected the offer of $22 per share put forth by Xerox. The company did not accept the offer by saying that the offer is below the standards of HP and is something the shareholders would never accept. The company found Xerox’s aptitude to pull off the deal in the first place as gameplay and fishy as Xerox seems to have its revenue sinking and in massive debt. HP has not yet openly said that it is ready to accept better offers. The tech giant plans to test the value of the deal with the help of executives and available relevant data.
HP is not against the acquisition but it just wants to know the benefits of being brought out. Recently, Activist Investor Carl Icahn was seen to have bought a $1.2 billion stake in HP and also has 10.6% of the Xerox’s shares. Thus, the investor has come out publicly that the merging of the companies is only going to help save money and advance the printer world. HP has many reasons to rule out the deal. The company finds selling to Xerox has a complete end to an era of one of the oldest companies. It would not seem to be an intelligent move for HP even though it would mean a lot of financial gains.
Similarly, HP also has other plans like having many of its employees fired. The tech giant will have almost 9,000 jobs, which is around 16% of its headcount, cut down by now or the end of the financial year of 2020. The company is not in a grim state as its profits seem to be growing but still just wants to strategically play to stay activate in the printer world.