HP Remains Silent As Xerox Pauses Take Over Campaign Amid Coronavirus Outbreak
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Xerox Holdings Corp., which is bidding to take over HP Inc., said on Friday that it would postpone meeting with HP shareholders, effectively putting the bid ‘on hold’.
On Friday 13th John Visentin the Xerox CEO, issued the following statement.
“In light of the escalating COVID-19 pandemic, Xerox 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,” said John Visentin, Xerox vice chairman and chief executive officer.
“As we closely monitor reports from government and healthcare leaders across the globe and work with colleagues in the business community to minimize the spread and impact of the virus, we believe it is prudent to postpone releases of additional presentations, interviews with media and meetings with HP shareholders so we can focus our time and resources on protecting Xerox’s various stakeholders from the pandemic.”
For the avoidance of doubt, Xerox does not consider the market decline since the date of its offer or the temporary suspension of trading in HP shares that occurred on March 10, 2020 and March 12, 2020 as a result of market-wide circuit breakers procedures to constitute a failure of any condition to its offer to acquire HP.
Xerox will take the same view on any future temporary trading halts, unless otherwise stated in advance.
Earlier this month, HP rejected Xerox’s raised takeover bid of about $35 billion, saying it undervalued the personal computer maker.
HP also requested its shareholders to reject the tender offer, saying it would disproportionately benefit Xerox shareholders relative to HP shareholders.
After Xerox raised its offer, HP said it would implement a poison pill plan to stop investors from amassing more than 20% stake in the company.
To date HP has not made any statement about this latest development.
