Since November 5, 2019, Xerox officially tries to convince HP Inc to go under his bosom. But the American group of PCs and digital printing machines is still not convinced.
Xerox is adding another milestone to its takeover bid offering: it has secured $24 billion in binding financing commitments from financial firms Citi, Mizuho and Bank of America. HP's takeover bid amounts to $33.5 billion.
In the letter sent to HP's Board of Directors on Monday, January 6, John Visentin, the
xerox's Executive Vice President and Chief Executive Officer, ensures that both groups agree that the combination of the two companies "would generate substantial synergies and a significant improvement in cash flow, which in turn could allow for increased investment in innovation and better returns for shareholders" .
He goes on to say: "But it was also clear from our dialogue with your shareholders that you and your advisors questioned our ability to raise the capital needed to fund our proposal."
This 24 billion should remove any doubt, but from there to put HP at the foot of the wall ... No.
On Thursday, January 9, HP responds in a letter of only a few lines: "Your letter of January 6, 2020, regarding funding does not solve the key problem - the Xerox proposal significantly underestimates HP - and does not provide a basis for discussion."
