San Francisco, Nov 26: US technology company HP Inc has rejected Xerox Corporation's attempt to seek a forced combination of the two companies, saying its proposal "significantly undervalues HP."
In a letter to Xerox, HP chief executive Enrique Lores and board chair Chip Bergh said that the company's board of directors has reviewed Xerox's letter dated Nov 21 that offered to buy HP for about 33.5 billion US dollars, and turned down the latter's bid. HP questioned the US office technology company's ability to raise cash for the purchase, saying Xerox's propose is "highly conditional and uncertain," says a Xinhua news report.
HP said Xerox failed to give a clear answer to questions it raised in private discussions with Xerox executives in August and September.
"You failed to address them and instead walked away, choosing to pursue a hostile approach rather than continue down a more productive path," HP said in the letter. It added that Xerox's revenue has fallen from 10.2 billion dollars to 9.2 billion dollars since June 2018 and is expected to continue the downward trend.
HP first expressed its rejection to Xerox on Nov 17 in response to a proposal submitted earlier this month, in which Xerox put the total value of a possible transaction at 33.5 billion dollars or 22 dollars a share. (UNI)