US-based printer-maker Xerox has launched a stinging attack on HP’s board, saying the directors have adopted a “poison pill” and it will push for new candidates to run the company.
Since the beginning of the year, Xerox has been playing a high-stakes game, threatening to replace HP's entire board at today’s annual general meeting, upping the stakes in its bid to control the company.
The Wall Street Journal reports that Xerox bought a small stake in HP in recent weeks. The stake would give Xerox the right to nominate directors for elections to be held at HP’s annual meeting.
Xerox has been attempting a takeover for months, and HP has twice rejected the bids.
Just over a fortnight ago, the document management technology company increased its offer price for HP to R359 ($24) per share.
Its intention is to present this new enhanced offer on or around 2 March, for all HP shares of common stock of HP, which it says will comprise $18.40 in cash and 0.149 Xerox shares for each HP share.
Xerox had initially offered HP $22 per share. The bid consisted of 77% in cash and 23% stock, or $17 in cash and 0.137 Xerox share for each HP share.
Now, in a statement, the company fired warning shots at HP directors, signalling it is still fighting to take control of the company.
“The HP board clearly adopted a poison pill because our offer is receiving overwhelming support from their shareholders. Regardless of what the company and its army of advisors announce on Monday, we believe HP shareholders appreciate that the value we could create by combining Xerox and HP outweighs ‒ and is incremental to ‒ anything HP could achieve on its own,” read the Xerox statement.
It adds: “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.”
HP, one of the world's largest computer and electronics companies, has been struggling to find a viable model to move beyond its profitable printing business as customers shift toward digitisation.
In October, HP posted its fiscal 2020 financial outlook and restructuring strategy, announcing plans to cut up to 9 000 jobs globally in the next three years.
Share