XRX - Xerox Holdings Corporation
17.77 +0.09 (0.51%)
After hours: 7:38PM EDT
| Previous Close | 17.95 |
| Open | 17.84 |
| Bid | 17.50 x 800 |
| Ask | 17.71 x 1000 |
| Day's Range | 17.45 - 18.08 |
| 52 Week Range | 14.22 - 39.47 |
| Volume | 2,871,037 |
| Avg. Volume | 3,617,515 |
| Market Cap | 3.609B |
| Beta (5Y Monthly) | 1.77 |
| PE Ratio (TTM) | 6.24 |
| EPS (TTM) | 2.84 |
| Earnings Date | Jul. 28, 2020 - Aug. 03, 2020 |
| Forward Dividend & Yield | 1.00 (5.57%) |
| Ex-Dividend Date | Jun. 29, 2020 |
| 1y Target Est | 18.25 |
- Bloomberg
HP Reports Declining Revenue on Supply-Chain Disruptions
(Bloomberg) -- HP Inc. reported declining quarterly sales, signaling the coronavirus pandemic has disrupted the supply chain of the world’s second-largest personal computer maker. Shares declined about 5.5% in extended trading.Revenue fell 11% to $12.5 billion in the period ended April 30, the Palo Alto, California-based company said Wednesday in a statement. Analysts, on average, estimated $12.9 billion, according to data compiled by Bloomberg. HP projected profit, excluding some expenses, of 39 cents to 45 cents a share in the current quarter, falling short of analysts estimates of 46 cents.HP will delay its splashy $15 billion buyback plan until the “market stabilizes,” Chief Financial Officer Steve Fieler said on a conference call after the results. The company will provide an update on the repurchases some time in the current quarter, he said.The buybacks were part of a $16 billion program to return more money to shareholders. The company adopted the proposal to dissuade investors from supporting a hostile takeover bid by rival Xerox Holdings Corp., which eventually dropped its effort March 31, citing economic uncertainty caused by the pandemic. HP Chief Executive Officer Enrique Lores has sought to shore up the print division he once ran because of its traditional role fueling the company’s profitability.HP reported fiscal second-quarter profit, excluding some expenses, of 51 cents per share, exceeding analysts’ projections of 42 cents.“Driven by supply-chain disruptions, we saw an impact in several of our businesses,” Lores said in an interview. “They started in China, then they evolved into Southeast Asia. But we are back at full capacity.”Executives cautioned that the printing division would post worse results in the current period ending in July than in the previous quarter, but revenue should improve over the course of the period. The company said it is ahead of its target to cut $1.2 billion of expenses by 2022, including by trimming employees’ salaries. HP expects to spend more money on the supply chain and logistics efforts in the current period, executives said on the call.The stock dropped to a low of $16.12 in extended trading after closing at $17.12 in New York. Shares have declined 17% this year.Revenue from personal computers and related systems decreased 7% to $8.3 billion in the period, with declines across laptops, desktops and workstations. Laptop demand held up the best due to more people buying computers to work and learn from home.Sales in the printing division fell 19% to $4.15 billion, with ink supplies dropping 15%. Consumer hardware revenue declined 16% and commercial devices decreased 31%.(Updates with executive comments starting in the third paragraph.)For more articles like this, please visit us at bloomberg.comSubscribe now to stay ahead with the most trusted business news source.©2020 Bloomberg L.P.
- Business Wire
Xerox Holdings Corporation Declares Dividend on Common and Preferred Stock
Xerox Holdings Corporation announced that its board of directors declared a quarterly cash dividend of $0.25 per share.
- Zacks
New Strong Sell Stocks for May 13th
Here are 5 stocks added to the Zacks Rank 5 (Strong Sell) List today
- Business Wire
Important Update for Xerox Annual Meeting of Shareholders
Due to the public health effects of the COVID-19 outbreak the Xerox Annual Meeting of Shareholders will now be held as a virtual meeting.
- GlobeNewswire
Green Plains to Supply Xerox with FDA Approved FCC Grade Alcohol
OMAHA, Neb., May 05, 2020 -- In response to the ongoing COVID-19 pandemic, Green Plains Inc. (NASDAQ:GPRE) is supplying FDA approved, FCC grade alcohol to Xerox Holdings.
- Motley Fool
Xerox (XRX) Q1 2020 Earnings Call Transcript
During this call, Xerox executives will refer to slides that are available on the web at www.xerox.com/investors. At the request of Xerox Holdings Corporation, today's conference call is being recorded. Other recording and/or rebroadcasting of this call are prohibited without the expressed permission of Xerox.
- Bloomberg
Xerox Withdraws 2020 Guidance After Posting Loss Due to Virus
(Bloomberg) -- Xerox Holdings Corp., which last month dropped a hostile takeover bid for larger rival HP Inc., withdrew its annual revenue forecast, signaling uncertainty over how high a toll the economic slowdown from the Covid-19 pandemic will take on the copy-machine maker.Revenue reached $1.9 billion over the first quarter, a 14% drop from a year earlier, the Norwalk, Connecticut-based company said Tuesday in a statement. Pretax losses came in at $5 million. Xerox said in January it expected to generate adjusted profit of as much as $3.70 a share on revenue of $8.63 billion in fiscal 2020.Xerox is reporting results for the first time since calling off its effort to acquire HP because of the economic uncertainty caused by the virus. Now Chief Executive Officer John Visentin must shepherd the pioneer in photocopying technology through the downturn in the face of falling demand for printed documents and eight years of declining sales. Businesses, preserving cash to weather a possible recession, are also postponing information technology projects, representing a threat to Xerox.“While this isn’t the year we planned for, it’s the one we have,” Visentin said on a conference call with analysts. “I’m doing everything to make sure that Xerox and its team members get out of this in a position of strength.”Xerox’s shares rose 2% in trading in New York. The stock has plunged 50% this year.The hardware company warned that, because of the lock down measures countries are implementing, the hit on its business could persist. Xerox expects the greatest impact to its revenues from business closures to be during the second quarter, with revenue returning closer to expected levels nearer the end of the year.Xerox generated $325 million in equipment sales of hardware in the first quarter, a decrease of 27% from a year earlier. The company recognized $1.5 billion in post-sale revenue during the period, which includes ink supplies, maintenance and other managed services.Xerox executives said the company is cutting non-essential expenses to preserve cash. The company expects to achieve gross savings of $450 million and return 50% of free cash flow to investors this year.The hardware company is seeing the most demand for machines from U.S. state and federal governments and healthcare clients, Visentin said. Xerox is participating in European government programs that help pay the salaries of its employees, and has encouraged U.S. clients to apply for government subsidy programs. For customers that are struggling, Xerox is trying to find flexible, individual solutions, including letting some businesses defer their monthly payments for a later date.(Updates with CEO quote in fifth paragraph and additional details throughout.)For more articles like this, please visit us at bloomberg.comSubscribe now to stay ahead with the most trusted business news source.©2020 Bloomberg L.P.
- Business Wire
Xerox Releases First-Quarter Results
Xerox Holdings Corporation (NYSE: XRX) announced its first-quarter 2020 financial results.
- Business Wire
Xerox Holdings Corporation Plans Webcast to Discuss First-Quarter 2020 Results
Xerox Holdings Corporation will host a live audio webcast with online presentation slides at 8 a.m. ET on Tuesday, April 28 to discuss Q1 results.
- Business Wire
Xerox to Manufacture Hospital-Grade Sanitizer in U.S. and Canada for Frontline Healthcare Workers
Xerox Holdings Corporation is leveraging its manufacturing capabilities and in-house materials expertise to produce hand sanitizer.
- Bloomberg
Pandemic Could End Shareholder Supremacy for Good
(Bloomberg Opinion) -- In 1943, a group of top U.S. businessmen, calling themselves the Committee for Economic Development, began meeting in New York to discuss postwar employment. Sooner or later, they knew, legions of servicemen would be returning home in need of jobs. Forecasters were predicting that up to 30 million people could be unemployed once the war ended, which would plunge the country right back into the depression it had pulled out of only recently.To avoid that fate, economists calculated that the country needed 58 million private-sector jobs, up from 49 million in 1940. Abandoning conventional corporate wisdom, the committee embraced organized labor and called for deficit spending by the federal government. According to Rick Wartzman’s book, “The End of Loyalty,”(1)Harrison Jones, the chairman of Coca-Cola, argued that companies would need to start hiring more workers than they needed “so that the nation’s economic flywheel would begin to turn —workers becoming consumers, leading to demand for more products made by more workers.” In addition, prices would need to be low and paychecks high — even though that would obviously affect profitability.And that’s exactly what industry did when the war ended in 1945. By putting the needs of the country ahead of profits, corporate executives helped initiate one of the greatest economic expansions in history.Fast-forward to 2008. The “we’re all in this together” ethos that characterized top executives in the postwar era had been replaced by a new creed: “I’ve got mine.” Those ensconced in America’s C-suites were making millions of dollars every year — sometimes tens of millions — while worker pay had stagnated. Shareholder value reigned supreme. Companies’ commitments to the cities in which they operated had evaporated. Shareholder activists attacked companies that weren’t ruthless enough about laying off workers or taking on debt. The needs of consumers and employees paled next to enriching shareholders.The 2008 financial crisis exemplified this attitude. Think about how banks and mortgage servicers acted when millions of homeowners were unable to afford their subprime loans. Most of the time, they foreclosed instead of trying to find a way to modify the loans so that owners could remain in their homes. American International Group, which required a $170 billion bailout from the government, insisted on paying its traders $165 million in undeserved bonuses. Small companies closed because they couldn’t obtain loans — even though the big banks had taken billions in bailout loans from the feds. New layoffs were announced seemingly every day as the U.S. suffered through the worst recession since the Great Depression.Now, of course, the world is suffering through a new crisis, one caused by a pandemic. A few weeks ago, I wrote about how the coronavirus crisis had caused the Twitterati to act more respectfully toward one another. It’s true in the physical world as well: bikers and joggers smile and wave as they pass one another; customers ask about the well-being of those who are serving them; people wait without complaint as they stand in line, 6 feet apart, for their turn to enter the grocery store. There are a hundred examples like that.When the coronavirus crisis first began, I wondered how the men and women running companies would act. Would they behave like the executives of the 1940s or like those of 2008 and 2009? So far, at least, the answer appears to be the former. The larger question is whether this change will be lasting.Let me give you two examples that crossed my radar screen recently. In their own ways, they are representative of what many companies are doing.Xerox Holdings Corp. is not one of those companies facing a grim post-crisis future. Last year, it had $1.4 billion in earnings and $1.2 billion in free cash flow. Compared with other big companies, its stock buyback program is small. And though business is undoubtedly down, the company continues to generate revenue; the health-care industry, after all, uses copiers.Xerox was onto the crisis early; it had a stay-at-home policy in place well before the federal government began urging people to self-isolate. But the Xerox brass, starting with Chief Executive Officer John Visentin, decided that it wasn’t enough to simply ride out the crisis. “We have some of the smartest scientists in the world,” Visentin told me the other day. “It was impossible to believe that we couldn’t do something for mankind.”The first thing the company did was join forces with the suit manufacturer Hickey Freeman, which like Xerox is based in Rochester, New York, to make masks for Rochester General Hospital. (It turns out that N-95 masks are made from the same material that is used in some of Xerox’s high-end printers.)Looking around for more it could do, Xerox began to focus on ventilators. It found a small company in California, Vortran Medical Technology, which makes a $120 ventilator that’s meant to be used by patients who don’t need a full-blown $20,000 intensive care ventilator. (Most Covid-19 patients fall into that category.)Xerox and Vortran struck up a partnership. Xerox has since put together a supply chain, obtained the equipment it needs to create a small ventilator plant and is devoting a portion of its factory floor near Rochester to the venture. The floor is being configured so that the workers will be 6 feet apart, and other social-distancing measures are being taken. The hope is that Vortran and Xerox will be able to produce 150,000 to 200,000 of these disposable ventilators a month.Nobody asked Xerox to do this, which is part of the point. It saw a need — one that had nothing to do with its core business, and will never make much money — and decided to try to fill it. Hundreds of Xerox employees have been volunteering to join the project, which is another important aspect: Employees and management are aligned, something that hasn’t often been true in corporate America these past few decades.My second example is Bank of America. As my Bloomberg Opinion colleague Brian Chappatta noted in a column on Wednesday, the bank’s first-quarter profits were down 45%. But CEO Brian Moynihan seemed unperturbed.“Just as important as our financial results this quarter is what we are doing to take care of our teammates and to help our clients and our communities impacted by the virus,” he said at the opening of the bank’s quarterly conference call. Curious, I asked a bank spokeswoman for some more details. A half-hour later, she sent me a long list.It was impressive. For employees, the list included no layoffs in 2020 because of the coronavirus crisis; expanded benefits including no-cost coronavirus testing and $100 a day for backup child care; and a $20 an hour minimum pay rate. For customers, the bank has stopped foreclosures and allowed them to request payment deferrals on everything from auto loans to credit card late fees. There was more, including $100 million for communities to buy medical supplies and help for small businesses.When was the last time you heard a CEO tell a group of Wall Street analysts that its treatment of employees was as important as its financial results? Maybe never. How often have companies used their core resources to tackle societal challenges that will never accrue to the bottom line?That this is taking place across corporate America gives me hope. There is something about disease — and the prospect of death — that causes people to think hard about what truly matters. This may turn out to be naïve, but I believe that is happening in the executive suites of America’s big companies.Shareholder value has been an insidious force inside U.S. businesses, creating incentives that have led to selfish and callous behavior. If this crisis brings about a new set of C-suite values — or, more accurately, a return to an old set of values — then at least one good thing will have come of it.(1) The book’s full title is “The End of Loyalty: The Rise and Fall of Good Jobs in America.”This column does not necessarily reflect the opinion of Bloomberg LP and its owners.Joe Nocera is a Bloomberg Opinion columnist covering business. He has written business columns for Esquire, GQ and the New York Times, and is the former editorial director of Fortune. His latest project is the Bloomberg-Wondery podcast "The Shrink Next Door."For more articles like this, please visit us at bloomberg.com/opinionSubscribe now to stay ahead with the most trusted business news source.©2020 Bloomberg L.P.
- Thomson Reuters StreetEvents
Edited Transcript of XRX.N earnings conference call or presentation 28-Jan-20 1:00pm GMT
Q4 2019 Xerox Holdings Corp Earnings Call
- Business Wire
Xerox and Vortran Medical Partnering to Mass Produce Disposable Ventilators
Xerox Holdings Corporation (NYSE: XRX) and Vortran Medical Technology are teaming up to speed and scale production of Vortran’s GO2Vent ventilator.
- Bloomberg
Virus Didn't Have to Ground This Aviation Deal
(Bloomberg Opinion) -- Who’s willing to bet on the aerospace industry’s quick return from the coronavirus devastation? Not the CEOs of two of its leading suppliers. Woodward Inc. and Hexcel Corp. mutually agreed to call off their planned merger in light of the current pandemic. More than half of the world’s fleet has been grounded as travel bans and fear of contagion keep fliers at home, forcing the aerospace industry into a fight for its survival. This isn’t the first deal to get scotched because of the coronavirus: Xerox Holdings Corp. called off its $35 billion hostile pursuit of HP Inc. and private equity firm Apollo Global Management Inc. reportedly abandoned talks with TV-station owner Tegna Inc. for an $8.5 billion takeover. But both of those transactions reportedly involved at least some cash, which has become a precious commodity in the age of the coronavirus. The Woodward-Hexcel merger, by contrast, was all-stock, and as such, not dependent on capricious debt markets and an ill-timed overloading of balance sheets.There were some signs the companies were still being punished for going through with the deal: As of Friday, Hexcel and Woodward had each dropped more than 55% since the merger was announced in mid-January, compared with a decline of about 35% for the SPDR S&P Aerospace & Defense ETF. At those prices, the deal terms valued Hexcel at about $32 a share, or about $3.7 billion including debt, compared with an enterprise value of about $7.5 billion when the merger was first announced.While Hexcel shares declined Monday on news that the merger was off, Woodward’s stock rallied more than 10%. That gain feels short-sighted. If you liked an aerospace combination that “brings together a broad, unparalleled portfolio of leading-edge technologies” with a “strong balance sheet” in January, you should like it even more in April. The fact that the companies themselves aren’t convinced of this is on the one hand a sign of just how deep and long-lasting the slump in aerospace will be. But it also feels like a missed opportunity. A famous Warren Buffett maxim comes to mind: Be fearful when others are greedy and be greedy when others are fearful. To be sure, one of the big selling points of the Woodward-Hexcel merger was the ability to significantly ramp up research and development spending to better position the combined company to compete on the next generation of aircraft technology, with an eye toward better fuel efficiency and lower emissions. That has likely fallen further down the list of priorities for aerospace companies right now given the virus cash crunch and a drop in oil prices that’s made it more economical to keep flying older, clunkier models. There is also the question of distraction. Big deals are complicated. For all of Hexcel and Woodward’s previous talk of complementary cultures, there are bound to be integration hiccups, particularly when the virus fallout makes it likely job cuts will be in order. Separately on Monday, Woodward said it was implementing “workforce management” policies including a hiring freeze, layoffs and furloughs, without specifying the number of jobs that would be affected. It will also reduce its dividend, eliminate 2020 bonus payments and trim pay for the CEO, board and top officers. Hexcel also announced plans to evaluate employment levels and reduce spending.Still, the trend toward more climate-friendly aircraft is likely to be sustained over the longer term and the companies would have gotten more out of these cost-reduction actions if they were spread out across a bigger, combined entity. “Calling off the merger is clearly bad news for both companies, as we think scaling up makes a lot of sense, particularly when it comes to dealing with a crisis,” Vertical Research Partners analyst Rob Stallard wrote in a note. Both Woodward and Hexcel also announced shareholder rights plans meant to guard against unwanted takeover advances in a sign they are worried someone else will have take advantage of their depressed stock prices and have the gumption to pull off a deal that they couldn’t.This column does not necessarily reflect the opinion of Bloomberg LP and its owners.Brooke Sutherland is a Bloomberg Opinion columnist covering deals and industrial companies. She previously wrote an M&A column for Bloomberg News.For more articles like this, please visit us at bloomberg.com/opinionSubscribe now to stay ahead with the most trusted business news source.©2020 Bloomberg L.P.
- Yahoo Finance Video
Xerox drops $30B bid to takeover HP amid coronavirus crisis
Xerox Holdings Corp. will officially end its bid takeover to acquire HP Inc., as the coronavirus outbreak continues. Yahoo Finance’s Dan Howley shares the latest developments.
- Investing.com
Stocks - U.S. Futures Lower as Virus Victims Mount
Additionally, gold futures rose 0.6% to $1,606/60oz, while EUR/USD traded at $1.0939, down 0.8%.
- Bloomberg
Xerox Ends Its Hostile Pursuit of HP, Finally
(Bloomberg Opinion) -- It’s finally over.Xerox Holdings Corp. announced late Tuesday that it is abandoning its tender offer to acquire HP Inc., citing the global health crisis from Covid-19 and the ensuing difficult market environment. The maker of photocopiers also called off its effort to enter into a proxy fight to replace HP’s board. It marks the end of a dramatic back-and-forth struggle that began last November, when Xerox began its pursuit of HP, the second-largest computer maker. HP has repeatedly rejected Xerox’s overtures, including its most recent offer, valued at about $35 billion. But while Xerox is blaming coronavirus, its attempt to take over a company more than three times its size never made much sense in the first place. Not only would it require tens of billions in inherently risky debt financing — the whole strategy of buying a secularly challenged business and relying primarily on cost savings was never a winner.In February, for example, HP reported a 7% decline in its printer revenue and a 10% drop in printer-hardware unit sales for its fiscal first quarter ended in January. Cost cutting is not going to save this troubled business. Xerox wasn’t much better when it posted a sales decline for its December quarter.Both companies should instead focus on figuring out new growth strategies for their respective businesses, instead of being distracted by M&A and financial engineering.Adding two dinosaurs together was never going to magically make a new tech behemoth.This column does not necessarily reflect the opinion of Bloomberg LP and its owners.Tae Kim is a Bloomberg Opinion columnist covering technology. He previously covered technology for Barron's, following an earlier career as an equity analyst.For more articles like this, please visit us at bloomberg.com/opinionSubscribe now to stay ahead with the most trusted business news source.©2020 Bloomberg L.P.
- TechCrunch
Xerox drops $34B HP takeover bid amid COVID-19 uncertainty
Xerox announced today that it would be dropping its hostile takeover bid of HP. The drama began last fall with a flurry of increasingly angry letters between the two companies, and confrontational actions from Xerox, including an attempt to take over the HP board that had rejected its takeover overtures. All that came crashing to the ground today when Xerox officially announced it was backing down amid worldwide economic uncertainty related to the COVID-19 pandemic.
- Bloomberg
Xerox to Drop Its Hostile Bid for HP
(Bloomberg) -- Xerox Holdings Corp. ended its hostile takeover bid for HP Inc. because of uncertainty stemming from the Covid-19 pandemic, marking a blow to the photocopier company’s efforts to stimulate future growth.The Norwalk, Connecticut-based company will withdraw its tender offer to HP shareholders and stop an effort to win a slate of board directors. Xerox believes the underlying logic behind a combination remains sound and may revisit the idea in the future, said a person familiar with the issue who asked not to be identified discussing company deliberations.“The current global health crisis and resulting macroeconomic and market turmoil caused by Covid-19 have created an environment that is not conducive to Xerox continuing to pursue an acquisition of HP Inc.,” Xerox said Tuesday in a statement. “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.”HP, the world’s second-largest computer maker, has repeatedly rebuffed Xerox’s cash-and-stock offers, most recently valued at an estimated $35 billion. In the most recent proposal, an HP holder would have received $18.40 in cash and 0.149 Xerox shares. The offer was set to expire April 21.“We remain firmly committed to driving value for HP shareholders,” the Palo Alto, California-based company said in a statement. “We have a healthy cash position and balance sheet that enable us to navigate unanticipated challenges such as the global pandemic now before us, while preserving strategic optionality for the future.”HP had earlier implored shareholders to reject the tender offer and Xerox board nominees, suggesting that a debt-enabled combination would be “disastrous” for the hardware giant in the current economic environment.HP’s shares fell 1.5% in extended trading after closing at $17.36. Xerox’s stock was little-changed after ending Tuesday’s session at $18.94. The news of Xerox’s decision was reported earlier by the Wall Street Journal.Xerox, which has reported falling revenue, had hitched its future to an acquisition. The company expected that combining the companies would yield $2 billion in cost savings and more than $1 billion in additional revenue growth. Both hardware companies invented technologies still in use by consumers and office workers, and have struggled in a world increasingly driven by software.HP’s board characterized Xerox’s offers as undervaluing the company, and said it will return $16 billion to shareholders in an effort to show HP can stand on its own.Xerox criticized HP for failing to enter into substantive talks that could have led to a merger.“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,” Xerox said.(Updates with comment from HP in the fifth paragraph.)For more articles like this, please visit us at bloomberg.comSubscribe now to stay ahead with the most trusted business news source.©2020 Bloomberg L.P.
- Reuters
Xerox abandons $35 billion hostile bid for HP
Xerox's decision came after it said earlier this month it would postpone meetings with HP shareholders to focus on coping with the coronavirus pandemic. It represents a victory for HP CEO Enrique Lores, who faced a takeover battle as soon as he took over the reins of the Palo Alto, California-based company in November, and a defeat for Xerox CEO John Visentin, a former Hewlett-Packard and IBM Corp executive with ties to the private equity industry who took over as Xerox CEO in 2018. It is also a blow for billionaire investor Carl Icahn, who owns big stakes in both companies and had pushed for their merger.
- Business Wire
Xerox Provides Update on Proposal to Acquire HP
Xerox is withdrawing tender offer to acquire HP and will no longer seek to nominate slate of highly qualified candidates to HP’s Board of Directors.
- Investing.com
Xerox to Walk Away From $35B Takeover Bid for HP - WSJ
Investing.com - Xerox will reportedly pull its bid to buy rival HP amid concerns about its financial ability to pull off the deal in the wake of the coronavirus-led economic disruptions.
- Yahoo Finance
Coronavirus pandemic spurs brisk sales of HP PCs and printers as the nation works from home: CEO
HP CEO Enrique Lores tells Yahoo Finance demand for PCs and printers have been strong as people work from home during the coronavirus pandemic.
- Bloomberg
HP Urges Investors to Spurn Xerox Takeover
(Bloomberg) -- HP Inc. again asked shareholders to reject Xerox Holdings Corp.’s takeover offer, saying that a complex merger could be “disastrous” for the personal computer giant amid economic shocks stemming from the Covid-19 pandemic.“Under these circumstances and consistent with our fiduciary duties, we believe that we should not divert valuable time, attention and resources to a dialogue with Xerox about its proposed transaction,” the Palo Alto, California-based company said Wednesday in a letter to investors. “Since Xerox launched its unsolicited exchange offer and nominated directors, the global, social, economic and financial environments have changed radically. Despite this, Xerox continues to advance its tender offer and its proposed slate of directors in an effort to force a combination.”Xerox has sought to acquire HP, the world’s second-largest personal computer maker, for $24 a share in cash and stock, a deal valued at roughly $35 billion. Xerox said this month it would pause its pursuit of HP during the pandemic, but the company planned to resume the effort when the situation improved, Bloomberg News reported. Xerox has launched a tender offer for outstanding shares of HP and also nominated a slate of directors to replace the company’s board.For more articles like this, please visit us at bloomberg.comSubscribe now to stay ahead with the most trusted business news source.©2020 Bloomberg L.P.
