Xerox has made a takeover bid on HP. Computer manufacturer HP has confirmed this after rumors about it appeared on Wednesday. There are ongoing discussions between the companies, but no decisions have been announced yet.
In a statement , HP reports that the company has had discussions with Xerox recently about the possible combination of the two companies. One of the options would be an acquisition. Xerox made an offer last Wednesday, HP confirms. It is not clear how high that bid is, but according to the previous rumors that Wall Street Journal released , Xerox would offer more than $ 27 billion.
The takeover bid from Xerox on HP is striking, because Xerox, with 8 billion dollars, has a much lower market value than HP. The value of HP is around 27 billion dollars. Xerox would like to finance the acquisition with financial support from a major bank.
HP split into two companies in 2014, HP Inc. and HP Enterprise. Xerox has made the bid for the former, the division that makes printers and computers. Whether HP will respond to the takeover bid is not yet known, but says that the company will follow the path that is in the interest of its shareholders. HP will announce its quarterly results on November 26th, with the possibility of more details.
Xerox had plans to merge with Fujifilm last year, but that was canceled because shareholders felt Xerox was undervalued in that deal.