The arms race between HP and Xerox continues since the rejection of the proposal to buy HP from Xerox (see the : Nothing's going on between HP and Xerox anymore ). HP confirmed, in a press release, the intention of Xerox to nominate 11 candidates to stand for election to its Board of Directors at the 2020 annual meeting of shareholders (date to be determined).
"We believe that these appointments are a selfish tactic by Xerox to advance its proposal, which significantly undervalues HP and creates a significant risk to HP shareholders." says the manufacturer of digital presses and computers.
"The creation of value for HP shareholders is not dependent on a merger with Xerox. HP has many ways to generate long-term sustainable value. (...) The transaction proposed by Xerox attempts to use HP's financial strength to the benefit of Xerox shareholders."
And for HP, these appointments are dictated by shareholder Carl Icahn, who is openly in favour of the merger. Carl Icahn, who owns 10.6% of Xerox, has also acquired at least 4.24% of HP's shares (read Xerox's Carl Icahn reveals his stake in HP ) . "His position as a significant shareholder in Xerox means that his interests are not aligned with those of other HP shareholders. Because of Mr. Icahn's ownership position, he would disproportionately benefit from an acquisition of HP by Xerox at a price that undercuts HP."
"HP's Board of Directors is unwavering in its commitment to HP shareholders and will continue to take all appropriate actions to advance and protect the interests of HP shareholders" he asserts .
