Xerox is dropping the niceties. It really, really wants to merge with HP, and it has gone hostile, reported The Wall Street Journal. The copier company announced Thursday, January 23, it will nominate 11 new directors to replace HP’s entire board at HP’s upcoming shareholder meeting. Xerox has been attempting a takeover for months, and HP has twice rejected Xerox’s bids.
HP stated Thursday Xerox’s proposal “significantly undervalues HP and creates meaningful risk to the detriment of HP shareholders.” It has also raised significant concerns about Xerox’s business strategy, noting that its revenue fell nearly 10% in 2019.
But Xerox claims combining the companies, which are in similar businesses, could save tremendously on costs.
“We believe HP shareholders will be better served by a new slate of independent directors who understand the challenges of operating a global enterprise and appreciate the value that can be created by realizing the synergies of a combination with Xerox,” Xerox CEO John Visentin said in a statement Thursday.
HP called Xerox’s nominations a “self-serving tactic by Xerox to advance its proposal.”
The hostile takeover, if successful, would merge two American technology giants that have both seen better days.