US Xerox appeals to HP shareholders about the benefits of the proposed acquisition

The US Xerox has accused the company's HP acquisition plan is reasonable despite being repeatedly rejected. In an investor presentation document released on December 9, Xerox explained the idea behind the acquisition proposed by the company and claimed that the acquisition would benefit HP shareholders.

In November, the company paid $ 22 per share to HP [composition comprised 77% cash and 23% share exchange].Proposed acquisitiondid. In response, HP's board of directorsRejected unanimouslyThe proposal argued that the value of HP was greatly underestimated and would not benefit the shareholders. HP's market capitalization is $ 27 billion, about three times that of Xerox.

Xerox then sent a letter to HP's board of directors requesting a reconsideration of the acquisition proposal, and if it was not accepted, it would work directly with HP shareholders. In contrast, HP's board of directors tells Xerox and Icahn Enterprises that, in effect, Xerox's financial position is not enough to buy a much larger company than its own.Returned a letter.

□ In response, Xerox revealed that CEO John Visentin met with some HP shareholders and explained the key points of the acquisition. According to Xerox's “unquestionable” logic, the merger will increase cash flow, reduce debt, increase shareholder return on capital, and drive innovation investment expansion.

Xerox also states that some market gaps HP has are areas where Xerox excels. The company argues that by combining the two companies' complementary portfolios, the effective market size of both companies will increase.


«Xerox further criticized HP's approach to restructuring plans and argued that spending $ 1 cash to reduce $ 1 in expenses would not lead to future business efficiency. Xerox said the company's restructuring plan focuses on improving business operations and cash flow rather than reducing staff.

Xerox is once again asking for a three-week asset assessment, and said this work is "not a hassle, but it helps us to verify the assumptions and find further benefits of the combination of the two companies." Yes.


This article is from overseas CBS InteractivearticleEdited by Asahi Interactive for Japan.

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