Xerox vs HP Battle Heats Up
CBJ — Xerox Holdings is determined to win a takeover bid of HP even although the latter has said it would implement a ‘poison pill’ plan to shield itself against such a hostile takeover bid by the large U.S. printer maker.
“Despite the HP board’s intention to deny shareholders the chance to choose for themselves, we will press ahead with our previously announced tender offer and electing our slate of highly qualified director candidates,” Xerox said in a statement released to the media.
Xerox is now offering $24 per share following several outright rejections of lower bids offered to the HP executive branch.
HP says the implementation of the stockholder rights plan, which has a one-year expiration period, will look to stop any investor from obtaining more than 20% ownership. Such a move would leave Xerox having to go ahead with aggressive plans to replace HP’s board with its own nominees in a shareholder vote at the company’s annual meeting. Of course, there is no certainty as to how that vote would turn out.