Xerox is kicking off its hostile takeover bid of HP following pushback from the PC maker.
On Tuesday, Xerox said it plans on appealing to HP shareholders directly about buying the PC vendor. "While you may not appreciate our 'aggressive' tactics, we will not apologize for them," the company wrote in a letter to HP's leadership.
Xerox has been offering to buy HP for $22 per share, or $33.5 billion, believing the deal will help both vendors save $2 billion in costs. The merger also promises to help the combined company solidify its hold in the printer market.
What the company has in mind for HP's PC business has been left unsaid. But in today's letter, Xerox mentioned that the cost savings could lead to increased R&D investment.
"The potential benefits of a combination between HP and Xerox are self-evident. Together, we could create an industry leader—with enhanced scale and best-in-class offerings across a complete product portfolio— that will be positioned to invest more in innovation and generate greater returns for shareholders," Xerox added.
However, HP has been resistant to a potential merger. On Sunday, the PC maker sent a letter to Xerox that lists all the reasons why HP's board of directors believes the tie-up is a bad idea. Among them is Xerox's sagging revenue and the printer maker's recent decision to sell off its valuable stake in Fujifilm.
According to HP, Xerox has also been declining the company's attempts to carry out "due diligence" and let it scrutinize the printer maker's business. But on Tuesday, Xerox rejected the charge and claimed HP was the one at fault for delaying the due diligence process.
"Your refusal to engage in mutual due diligence with Xerox defies logic," it said, later adding: "Rather than engage with us in three weeks of customary mutual due diligence, HP continues to obfuscate and make misleading statements."
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HP did not immediately respond to a request for comment.
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