Xerox finally launches takeover bid with HP 'evaluating' the offer

HP to reveal stance on offer in 10 working days

Xerox has finally launched its hostile takeover of HP, urging shareholders to "secure superior value" and accept a deal not yet backed by HP's board.

HP meanwhile has released a statement saying that it will "evaluate the offer" and advise shareholders of its view within the next 10 working days.

Xerox CEO John Visentin said: "Our proposal offers progress over entrenchment.

"HP shareholders will receive $27bn in immediate, upfront cash while retaining significant, long-term upside through equity ownership in a combined company with greater free cash flow to invest in growth and return to shareholders."

Xerox added that its offer will expire on 21 April, while HP advised shareholders to take no action until it has provided an update.

HP said: "The HP board of directors will, consistent with its fiduciary duties and in consultation with its independent financial and legal advisors, carefully review and evaluate the offer to determine the course of action that the board believes is in the best interests of the company and all HP shareholders."

HP had been vocal in its opposition to a merger with Xerox until it announced its quarterly earnings last week, when it said that it is willing to "engage" with its counterpart.