Never miss a great news story!
Get instant notifications from Economic Times
AllowNot now


You can switch off notifications anytime using browser settings.
11,884.85-52.65
Stock Analysis, IPO, Mutual Funds, Bonds & More

Xerox considers takeover offer for HP

Xerox, which a day before agreed to jettison a slice of a venture with Japan’s Fujifilm Holdings for $2.3 billion, may be angling to take over the world’s largest maker of personal computers after China’s Lenovo Group. Any deal would buttress its ...

Bloomberg|
Nov 07, 2019, 12.03 AM IST
0Comments
BCCL
Xerox---bccl
HP itself is struggling in a plateauing PC market with the advent of smartphones.
SAN FRANCISCO: Xerox Holdings Corp is considering a cash-stock offer for the $27 billion PC giant HP Inc, the Wall Street Journal reported, a deal that could combine two of the biggest American names in office hardware.

Xerox’s board met on Tuesday to deliberate a deal that could result in $2 billion of annual cost savings, the newspaper cited unidentified people as saying. While there’s no guarantee the company will follow through, any offer would value HP at a premium to its market value, the Journal reported. Representatives for the companies weren't immediately available for comment after regular business hours.

Xerox, which a day before agreed to jettison a slice of a venture with Japan’s Fujifilm Holdings for $2.3 billion, may be angling to take over the world’s largest maker of personal computers after China’s Lenovo Group. Any deal would buttress its share of the printing and copying market, which has been hard-hit by the global move toward cloud computing and other internet services. It’s unclear how Xerox — a name synonymous with the copying industry — intends to finance the acquisition of a company several times its market value. Xerox has already secured an informal funding commitment from a major bank, the Journal reported, on top of proceeds from the sale of its stake in Fuji Xerox.

HP itself is struggling in a plateauing PC market with the advent of smartphones. The company, which appointed a new CEO last month, aims to slash as much as 16% of its workforce as part of a restructuring meant to cut costs and boost sales growth amid its first change in top leadership in four years. HP’s printing business, a major source of profit, has seen falling sales and recently was dubbed a “melting ice cube” by analysts at Sanford Bernstein.

Also Read

Xerox considers $27-billion takeover offer for HP

Carl Icahn takes stake in HP, pushes for merger with Xerox: Report

Love in the age of digital transformation: What a Xerox-HP merger tells us about the printing industry

HCL Tech gets $1.3 billion renewal deal from Xerox

Comments
Add Your Comments
Commenting feature is disabled in your country/region.
Download The Economic Times Business News App for the Latest News in Business, Sensex, Stock Market Updates & More.

Other useful Links


Follow us on


Download et app


Copyright © 2019 Bennett, Coleman & Co. Ltd. All rights reserved. For reprint rights: Times Syndication Service