Xerox to Push On With Hostile HP Takeover Bid, CEO Says

Xerox's CEO says the company intends to push ahead with its $33 billion unsolicited takeover bid for HP Inc.
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Xerox Holdings' (XRX) - Get Report top executive said Tuesday the copy machine maker intends to push ahead with its $33 billion unsolicited takeover bid for HP Inc. (HPQ) - Get Report, declaring that "a combined company would be more profitable and better positioned to diversify into higher growth markets.”

Shares of Xerox were up 5.5% to $36.99, while HP Inc. was up slightly to $21.75.

John Visentin repeated Xerox's intention during a conference call to discuss the Norwalk, Connecticut-based company's quarterly earnings.

“We are pressing ahead with the pursuit of this transaction," Visentin said, according to Bloomberg. "We are well-positioned to execute when and if we are successful.”

In November, Xerox said it would bring its takeover proposal for larger rival HP Inc. directly to shareholders unless the two sides are able to agree on access to private financial information.

Visentin said that Xerox had received positive feedback from the HP shareholders the company had spoken to.

"They believe in the value we can create," he said.

The chief executive also said the company's "confidence is quite high” that Xerox can unlock $2 billion in synergies with combination of two companies.

Earlier this month, Xerox said it secured $24 billion in financing for its proposed bid for HP.

Visentin said Xerox secured the "binding financial commitments from top-tier banks to remove any uncertainty over our ability to finance the transaction.”

The company also said it intends to nominate a slate of 11 candidates at HP's annual shareholders meeting to replace the printer company's board.

HP Inc., which did not immediately respond to a request for comment, previously has said Xerox's offer "significantly undervalues" the Palo Alto, California-based company.

HP Inc. also dismissed the nomination of the board candidates as "a self-serving tactic by Xerox," and noted that the company believed that Xerox’s proposal and nominations are being driven by activist investor Carl Icahn.

Meanwhile, Xerox posted better-than-expected fourth-quarter earnings, reporting net income of $818 million, or $3.61 a share, up from $137 million, or 56 cents a share, a year earlier. Adjusted earnings were $1.33 a share, beating the average analyst estimate of $1.11. Revenue totaled $2.44 billion, down from $2.5 billion a year ago.