HP letter to Xerox confirms no basis for further discussions

HP again rejected Xerox’s takeover offer in a terse letter, saying that it “significantly undervalues” the business.

Responding to Xerox CEO John Visentin’s recent letter that stated Xerox had secured $24 billion to finance the deal, HP CEO Enrique Lores and Chairman Chip Bergh said, on behalf of the Board of Directors, that the proposal “is not a basis for discussion”.

The letter, which was copied to Keith Cozza, Chairman of the Board at Xerox and President and CEO of Icahn Enterprises, appears below.

Dear John,

We reiterate that the HP Board of Directors’ focus is on driving sustainable long-term value for HP shareholders. Your letter dated January 6, 2020 regarding financing does not address the key issue – that Xerox’s proposal significantly undervalues HP – and is not a basis for discussion. The HP Board of Directors remains committed to advancing the best interests of all HP shareholders and to pursuing the most value-creating opportunities.