HP Inc. HPQ again has dismissed a takeover bid by Xerox (XRX) - Get Report, telling its would-be suitor its $33.5 billion offer “significantly undervalues HP — and is not a basis for discussion.”
A letter sent Wednesday to Xerox CEO John Visentin from HP CEO Enrique Lores and Chairman Chip Bergh states, “We reiterate that the HP Board of Directors' focus is on driving sustainable long-term value for HP shareholders. Your letter dated January 6, 2020 regarding financing does not address the key issue - that Xerox's proposal significantly undervalues HP - and is not a basis for discussion. The HP Board of Directors remains committed to advancing the best interests of all HP shareholders and to pursuing the most value-creating opportunities.”
On Tuesday, Xerox said it secured $24 billion in financing for its unsolicited $33.5 billion bid for HP.
HP’s market cap is over $30 billion. Shares added 1.31% Thursday, closing at $20.93. Xerox has a market capitalization of $7.7 billion, and its shares edged down 0.06% Thursday to end at $35.93.
Representatives of Xerox could not be reached Wednesday evening for comment.