One day after reaching an agreement with Fujifilm Holdings that settled the legal conflict surrounding its aborted merger with the Japanese company, Norwalk-headquartered Xerox Holdings has begun to pursue the acquisition of HP Inc.
On Tuesday, The Wall Street Journal reported that Xerox”™s board of directors raised the possibility of buying the Palo Alto, California-based printer and computer company in a $27 billion cash-and-stock offer. Separately, Bloomberg reported that Xerox secured a financing commitment from Citigroup Inc. to fund the acquisition, adding that Xerox Vice Chairman and CEO John Visentin would become CEO of the combined company.
As the media reports of Xerox”™s plans began to spread, HP issued a statement acknowledging that Xerox made an acquisition offer.
HP noted that it “had conversations with Xerox Holdings Corp. from time to time about a potential business combination. We have considered, among other things, what would be required to merit a transaction. Most recently, we received a proposal transmitted yesterday. We have a record of taking action if there is a better path forward and will continue to act with deliberation, discipline and an eye towards what is in the best interest of all our shareholders.”
Xerox has yet to publicly confirm its acquisition proposal.
HP has been experiencing financial stress. Last month, the company”™s president and chief executive Enrique Lores announced a restructuring plan to reduce its global workforce of approximately 55,000 employees by up to 9,000 employees over a three-year period.
