Xerox (XRX - Get Report) is considering making a cash-and-stock offer for HP Inc. (HPQ - Get Report) , which has a market value of about $27 billion, The Wall Street Journal reported.

The board of copier maker Xerox discussed the possibility Tuesday, people familiar with the matter told the Journal. 

CNBC reported Wednesday that Xerox has made a cash-and-stock offer for HP.

HP, which makes computers and printers, is more than three times the size of Xerox and any bid would be at a premium to its current stock price of $18.40, the people said. HP is the second biggest printer maker behind China's Lenovo. HP has begun a restructuring under its new CEO, Enrique Lores, who took over the top role Nov. 1.

Xerox has a market cap of $8.05 billion.

A combination of Xerox and HP Inc. could result in annual cost savings of $2 billion, the people told the Journal.

Powerful. Simple. Automated contract-management. See how you can get all three with Xerox DocuShare Flex. We'll have live demos at the IAACM conference this week. https://t.co/GIxeYYufQ3

— Xerox (@Xerox) November 5, 2019

Earlier this week, Xerox agreed to sell its 25% stake in the Fuji Xerox venture to Fujifilm and will receive proceeds of $2.3 billion. It also announced the dismissal of a lawsuit of more than $1 billion filed against it by Fujifilm, the Journal noted.

Xerox also has received an informal funding commitment from a major bank, known as a "highly confident letter," the people told the Journal.

Xerox sharesrose 2.34% to $37.22. HP rose 10% to $20.24.