Xerox Holdings Corp. has dropped its effort to acquire HP Inc. by a hostile takeover, citing the COVID-19 pandemic as the sole reason for its decision.
The Norwalk-headquartered company had suspended its takeover efforts roughly three weeks ago. At the time, John Visentin, CEO and vice chairman, released a statement that stressed how the company “needs to prioritize the health and safety of its employees, customers, partners and affiliates over and above all other considerations, including its proposal to acquire HP.”
The new announcement, which was made in an unattributed press statement, said that the “current global health crisis and resulting macroeconomic and market turmoil caused by COVID-19 have created an environment that is not conducive to Xerox continuing to pursue an acquisition of HP Inc. Accordingly, we are withdrawing our tender offer to acquire HP and will no longer seek to nominate our slate of highly qualified candidates to HP”™s Board of Directors.”
Xerox also offered thanks to the HP stockholders that allegedly supported its efforts, its candidates who were proposed to stand for election to the HP board, and to the “banks who agreed to finance this acquisition, who never wavered in their commitments, even during the market turmoil caused by COVID-19.”
