HP has rejected Xerox Holdings Corp's raised takeover bid of about $35 billion, replying that the offer is still undervalued. Xerox had increased its offer last month by $2 to $24 per share.
Chip Bergh, Chairman of HP's board confirms that the Xerox offer would leave their shareholders with an investment in a combined company that is burdened with an irresponsible level of debt and which would subsequently require unrealistic, unachievable synergies that would jeopardize the entire company.
HP had said it would implement a poison pill plan to stop investors from amassing more than 20% stake in the company. HP has requested its shareholders to reject Xerox's tender offer to acquire all its outstanding shares, which was launched by Xerox earlier this week. The offer would disproportionately benefit Xerox shareholders relative to HP shareholders.
