In Xerox’s recent effort to get HP to bend to its will and mix the two companies, it announced its intent today to try to replace the entire HP board of directors at the company’s stockholder’s meeting in April. That would be the same board that unanimously rebuffed Xerox’s takeover bid.
Xerox and HP have been playing a highly public recreation of tit for tat in recent months. Xerox wants very much to combine with HP, and offered $34 billion, an render HP summarily rebuffed at the end of last year. Xerox peril to take it to shareholders.
Now it wants to take over the board, announcing today that it had nominated 11 parties to change the present slate of directors.
As you might imagine, HP was none extremely pleased with this latest move by Xerox.” We believe these nominations are a self-serving tactic by Xerox to advance its proposal, that significantly undervalues HP and creates meaningful jeopardy to the detriment of HP stockholders ,” HP shot back in a statement today emailed to TechCrunch.
It went on to blame Xerox shareholder Carl Icahn for the continued pressure.” We believe that Xerox’s proposal and nominations are being driven by Carl Icahn, and his large ownership position in Xerox means that his interests are not aligned with those of other HP stockholders. Due to Mr. Icahn’s ownership position, he would disproportionately benefit from an acquisition of HP by Xerox at world prices that undervalues HP ,” the company stated.
The two companies exchanged increasingly harsh words in November as Xerox signaled its intent to take over the much larger HP. HP questioned Xerox’s ability to raise the money, but earlier this month it announced had in fact raised the $24 billion it would need to buy the company. HP was still not convinced.
Today’s exchange is just the latest between the two companies in an increasingly hostile bid by Xerox to combine the two companies.
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