HP to keep quiet on Xerox's latest bid
Vendor says it wants shareholders to have ‘full information’ on earnings before responding to Xerox’s renewed takeover approach
HP will remain silent over Xerox's sweetened merger offer until after it has revealed its Q1 results later this month.
On Monday Xerox upped its initial offer of $22.00 per share made in November to $24.00 per share.
HP has always felt compelled to issue an immediate statement in response to Xerox's continued efforts to seize control of its print rival.
But this time, HP has said it will not respond to Xerox's refreshed takeover offer until it has reported its Q1 results on 24 February.
"HP wants its shareholders to have full information on the company's earnings and the value inherent in the company before responding to Xerox's 10 February press release," it said in a statement.
The Palo Alto-based PC and printer maker also said that it will provide shareholders with "additional information" about its strategic and financial future.
"At that time, when out of its quiet period, HP will share additional information about its plan to drive sustainable long-term value for its shareholders, including through the execution of the Company's multi-year strategic and financial plan and the deployment of its strong balance sheet," it said.
In its last financial quarter, ending 31 October 2019, HP reported wafer-thin revenue growth of 0.3 per cent year on year, with its PC division growing by four per cent. Its print and print supplies business, which has been HP's Achilles heel due to competition from cheaper third-party alternatives, saw revenues plunge by six per cent and seven per cent respectively.
It was a quarter in which HP announced it will cut up to 9,000 roles globally as part of a cost reduction exercise.
Soon after, Xerox launched a takeover bid priced at $34bn, which was promptly shot down by HP's shareholders.
Xerox rallied by securing $24bn in bank loans to prove to HP shareholders that it had the financial backing for a merger.
The rival print vendor also said it would nominate 11 candidates to replace HP's board of directors at its next annual meeting of stockholders later this year.