HPQ shares fell 2% to $17 a share. Xerox shares rose 0.11% to18.96.
Some had noted that Xerox could have to take on a large amount of debt to by the much larger HPQ.
Xerox said, "The current global health crisis and resulting macroeconomic and market turmoil caused by COVID-19 have created an environment that is not conducive to Xerox continuing to pursue an acquisition of HP Inc. Accordingly, we are withdrawing our tender offer to acquire HP and will no longer seek to nominate our slate of highly qualified candidates to HP’s Board of Directors.”
HPQ had rejected a series of offer from Xerox previously, saying that the deal is worth less than the value HPQ can produce on its on.
Xerox’s latest offer was for $24 a share.
A prior offer was for $23 a share. Xerox’s latest offer is roughly 75% in cash and roughly 25% in Xerox stock.