The chief executive of Xerox has outlined his roadmap for a hostile takeover of HP after the laptop and printer maker rejected a takeover bid in excess of $30bn earlier this week.
HP reviewed a takeover proposal first submitted on 7 November, but its CEO declared earlier this week that the bid significantly undervalued the company, and wasn't in the best interests shareholders. Xerox's CEO John Visentin has written back to HP to dispute this, suggesting instead the company's valuation actually represents a huge premium on the target share price set by the firm's own financial analysts Goldman Sachs.
The dispute also centres on what Xerox describes as "one-way" due diligence, in which HP has demanded that Xerox performs customary checks ahead of a merger, but has declined to reciprocate. The firm has now set a deadline for HP to agree to mutual due diligence by Monday 25 November, or Xerox will take its case directly to shareholders.
"While we are glad to see that HP's Board of Directors acknowledges the substantial merits of a business combination between Xerox and HP and are open to exploring the value opportunity for our respective shareholders, your response lacks a clear path forward," Visentin wrote in his letter.
"The Xerox Board of Directors is determined to expeditiously pursue our proposed acquisition of HP to completion – we see no cause for further delay. The overwhelming support our offer will receive from HP shareholders should resolve any further doubts you have regarding the wisdom of swiftly moving forward to complete the transaction."
This sort of thing sickens me. Acquisitions, asset stripping, greed. My old company Synstar International got eaten by HP - there is nothing left now. HP might get eaten by Xerox(!). Sharks getting eaten by bigger sharks. Mammon...