Xerox to Nominate Directors to HP Board to Push Takeover Bid

Xerox plans to nominate as many as 11 directors to HP Inc.'s board as it pushes its $33 billion unsolicited takeover bid.
Author:
Publish date:

Xerox Holdings (XRX) - Get Report is gearing up its $33 billion unsolicited takeover bid for HP Inc. (HPQ) - Get Report by nominating as many as 11 directors to the computer maker's board, The Wall Street Journal reported.

Xerox shares were up slightly to $36.18, while HP Inc. was off 1.1% to $43.49.

Xerox in recent weeks has bought a small HP stake, the Journal said, citing people familiar with the matter, giving it the right to nominate directors for elections to be held at the company’s annual meeting this summer.

The deadline for nominations to HP’s board is Friday. Xerox could still decide to not follow through with the nominations, the Journal reported.

In November, Xerox announced 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.

"The potential benefits of a combination between HP and Xerox are self-evident,"Xerox said in a letter to the HP board.

HP said the cash-and-share bid "significantly undervalues HP," adding that Xerox's "aggressive words and actions" suggest its aim to pursue a hostile takeover rather than a "more productive" path that would combine the two companies.

Earlier this month, Xerox said it secured $24 billion in financing for its proposed $33.5 billion bid for HP. Inc.

In a letter to HP's board, the Norwalk, Conn., imaging-technology provider said Citi, Mizuho and Bank of America agreed to provide the financing for the deal.

HP turned Xerox down again, repeating its argument that the “significantly undervalues HP — and is not a basis for discussion.”

Neither company immediately responded to requests for comment.