COVID-19 takes down Xerox's pursuit of HP.
April 1, 2020
Xerox‘s takeover bid for HP is over. The company cited the coronavirus pandemic and subsequent economic turmoil for ending to the effort to acquire the tech giant.
Xerox, which started its pursuit of HP in November, less than two weeks ago pointed to COVID-19 for stalling its momentum to acquire its bigger rival. On Tuesday, it withdrew its tender offer to buy HP and won’t nominate candidates to HP’s board of directors.
“While it is disappointing to take this step, we are prioritizing the health, safety and well-being of our employees, customers, partners and other stakeholders, and our broader response to the pandemic, over and above all other considerations,” Xerox said in a statement.
The vendor reiterated what it views as “compelling long-term financial and strategic benefits” from a combined Xerox and HP.
“The refusal of HP’s board to meaningfully engage over many months and its continued delay tactics have proven to be a great disservice to HP stockholders, who have shown tremendous support for the transaction,” the company said.
In a letter to HP shareholders on March 25, HP emphasized its commitment to managing the company through the pandemic. It also stressed focusing on its business and the needs of shareholders, customers, 250,000 partners, and 55,000 employees, worldwide. The letter further addressed the proposals made in Xerox’s takeover bid for HP.
HP’s Enrique Lores
Enrique Lores, president and CEO of HP, and Chip Bergh, board president, wrote on behalf of the board of directors: