HP rejects Xerox's raised takeover offer

[March 05, 2020]  (Reuters) - HP Inc <HPQ.N> on Thursday rejected Xerox Holdings Corp's <XRX.N> raised takeover bid of about $35 billion, saying that the offer still undervalued the personal computer maker.

The company logo for Xerox is displayed on a screen on the floor of the New York Stock Exchange (NYSE) in New York, U.S., March 11, 2019. REUTERS/Brendan McDermid - RC15DA6446E0/File Photo

The U.S. printer maker had increased its offer last month by $2 to $24 per share, following rejections of its previous buyout offers by the PC maker.

"The Xerox offer would leave our shareholders with an investment in a combined company that is burdened with an irresponsible level of debt and which would subsequently require unrealistic, unachievable synergies that would jeopardize the entire company," Chip Bergh, chair of HP's board, said on Thursday.

Xerox did not immediately respond to a request for comment.

Following the raised offer, HP had said it would implement a poison pill plan to stop investors from amassing more than 20% stake in the company.

HP has requested its shareholders to reject Xerox's tender offer to acquire all its outstanding shares, which was launched by Xerox earlier this week.

The offer would disproportionately benefit Xerox shareholders relative to HP shareholders, the company said.

(Reporting by Akanksha Rana in Bengaluru; Editing by Vinay Dwivedi)

[© 2020 Thomson Reuters. All rights reserved.]

Copyright 2020 Reuters. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.  Thompson Reuters is solely responsible for this content.