US: Xerox to buy HP?

Xerox is reportedly considering a bid to acquire HP at a premium over the PC and printer vendor’s US$27 billion market value, reported the Wall Street Journal. 

Xerox is considering making a cash-and-stock offer for HP, which has a market value of about US$27 billion, according to people familiar with the matter. The copier maker’s board discussed the possibility Tuesday, November 5, the people said.

There is no guarantee Xerox will follow through with an offer or that one would succeed. HP, which installed a new chief executive just last week, is more than three times the size of Xerox and any bid would be at a premium to its current stock price, the people said.

According to The Wall Street Journal, Xerox has received an “informal funding commitment from a major bank.” The Journal reported that a merger gives the two companies the opportunity to cut more than US$2 billion in expenses. 

The report comes after HP began a major restructuring under its new CEO, Enrique Lores, who started last week, and after Fujifilm announced Monday night that it will buy Xerox’s remaining ownership in the Fuji Xerox joint venture for US$2.3 billion. Fujifilm also announced that it is dropping a US$1 billion breach of contract suit against the American copier.

Full Content: Wall Street Journal

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