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HP rejects Xerox's offer, open to new bids to buy Xerox

HP rejects Xerox's offer, open to new bids to buy Xerox
HP rejects Xerox's offer, open to new bids to buy Xerox
HP Inc said in a statement on Sunday that the company has been significantly undervalued in the acquisition offer presented by Xerox Corp for $33.5 billion cash and stock. The personal computer maker rejected the bid from the printer maker and said it is open to new bids to buy Xerox. 

Xerox had put forward an offer for acquiring HP on November 5. This came after the printer maker got over with an ongoing dispute between the company and Fujifilm Holdings Corp, its joint venture partner. 

Xerox said earlier this month that it would sell its stake in the joint venture with Fujifilm worth $2.3 billion.

The personal computer makers said in response to the offer that the resulting acquisition would lead to a lot of debt which was not in line with the interests of its shareholders. 

After rebuffing the deal offered by Xerox, HP said that it is open to new deals that would allow it to acquire the printer maker. This comes as the company identifies the benefits of the acquisition. 

Xerox CEO John Visentin wrote in the offer letter to HP that the company is ready to quickly finalize their due diligence. This has also put pressure on Xerox to allow HP access to its books. 

The rejected offer from Xerox involved shareholders receiving $22 per share in which $17 would be in cash and the remaining as 0.137 Xerox shares for is HP share. If the offer was accepted, shareholders of the personal computer maker would have ownership of 48 percent of the combined company. 

According to many analysts, the merger would result in merits for both companies as the printing market around the world is becoming stagnant. However, there were some concerns about the different offerings and pricing models of the companies which may result in some challenges in integration.