Xerox Goes Hostile to Takeover HP and Aims at Stakeholders

Xerox Goes Hostile to Takeover HP and Aims at Stakeholders

Mergers and takeovers are nothing new in the technology sector. Giants like Google, Apple, and Microsoft have taken over smaller companies so many times in the last decade. The merger of 2 giant entities is also not new. However, not all such mergers take place amicably and adequately, always! The ongoing fiasco between HP and Xerox, notably 2 of the largest tech companies, is making headlines these days. After HP rejecting the takeover offer of Xerox in clear terms, the latter has decided to go hostile. John Visentin- the CEO of Xerox has shot a letter to the HP management saying his company will now go hostile in its takeover bid and approach the shareholders of HP directly.

The Xerox CEO offered HP an amount of $33.5 billion for takeover, which was rejected by the latter. Now, he will knock the HP shareholders directly to obtain their support. Possibly he was miffed by HP’s blunt response, which stated the deal seemed beyond the capacity of Xerox to bear it. It also questioned the present economic stature of Xerox. Visentin was not diplomatic in the letter and clarified the outcome would be suitable for both the tech giants. Reportedly, Carl Icahn, an Activist investor who owns almost 11% stake in Xerox, is pushing for this takeover to happen. Xerox earlier gave HP a Nov. 25 deadline to rethink the offer.

While Xerox is getting aggressive to make this takeover deal work out, the industry experts think HP is still in an advantageous position. Moor Insights & Strategies’s principal analyst and founder Patrick Moorhead, said that HP is more massive of the two companies. While the latest letter shot by Xerox CEO is not a secret anymore, Spokespeople for both HP and Xerox have not commented on the same so far. It would be interesting to see HP, which is a leader in PC and printing supplies, resorts to anything drastic to resist the hostile takeover attempt by Xerox.

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