|Bid||35.00 x 1000|
|Ask||36.23 x 800|
|Day's Range||36.10 - 36.57|
|52 Week Range||23.23 - 39.47|
|Beta (5Y Monthly)||1.77|
|PE Ratio (TTM)||12.81|
|Earnings Date||Jan. 26, 2020 - Jan. 30, 2020|
|Forward Dividend & Yield||1.00 (2.68%)|
|Ex-Dividend Date||Dec. 28, 2019|
|1y Target Est||42.67|
(Bloomberg) -- Xerox Holdings Corp. is preparing to seek control of HP Inc.’s board after the personal-computer maker rejected efforts to negotiate an acquisition, according to people familiar with the matter.The iconic printer maker is expected to submit at least a majority slate of directors ahead of a Friday deadline for nominations to the 12-member board, said the people, who asked not to be identified because the matter is private.Xerox has no plans at this point to increase its bid for HP, the people said. The company is still finalizing its plans and may choose to run a full slate to replace the entire board, the people said.Xerox executives have argued the tie-up would revive both companies, which have been struggling, with products that complement their hardware businesses. A deal would unlock about $2 billion synergies, they’ve said.Representatives for Xerox and HP declined to comment.Xerox’s plans were first reported by Dow Jones. If the company pushes ahead with a formal proxy fight, it would represent a new level of hostility between two hardware giants that have withered in a world increasingly driven by software.Xerox ShrinksXerox’s machines revolutionized the way businesses run, but the shift away from printed documents has dented the Norwalk, Connecticut-based company, which has been declining in size for almost a decade.HP, once the world’s largest technology company by revenue, has taken dramatic actions to remain afloat, including splitting from its server, software and services arms in 2015.The company, based in Palo Alto, California, has grown modestly as it contends with a stagnant personal computer market. Still, HP believes it would be better off with a restructuring plan it announced last year than as part of Xerox.Offer RejectedHP in November rebuffed an unsolicited, cash-and-stock offer from Xerox worth an estimated $22 per share, saying it undervalued the company. HP also cited concerns about the financial health of its smaller rival, which has experienced declining annual revenue since 2012.HP’s board said it was open to exploring a merger, but believed the offer price undervalued the company. Activist shareholder Carl Icahn, who owns about 11% of Xerox and has a 4.3% stake in HP, has pushed for a tie up between the companies.Four of the seven Xerox board seats are held by representatives of Icahn and an allied shareholder. If Xerox took control of HP’s board, the two could, in effect, control both companies.Xerox announced Jan. 6 that it had arranged a $24 billion loan with a group of banks to finance the takeover. HP and its advisers had earlier questioned Xerox’s ability to raise the money needed to handle the deal.Following the financing announcement, HP said it believed the offer still undervalued the company.(Updates with details of merger efforts starting in sixth paragraph)\--With assistance from Fion Li.To contact the reporters on this story: Ed Hammond in New York at email@example.com;Scott Deveau in New York at firstname.lastname@example.org;Nico Grant in San Francisco at email@example.comTo contact the editors responsible for this story: Jillian Ward at firstname.lastname@example.org, ;Liana Baker at email@example.com, Andrew Pollack, Michael HythaFor 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.
The U.S.-based printer maker bought a small stake in HP in recent weeks, the newspaper reported, citing sources. The stake would give Xerox the right to nominate directors for elections to be held at the HP's annual meeting this summer, the report said, adding that the deadline to nominate directors is Friday, and Xerox could still decide to not follow through with the nominations. In November last year, Xerox made the $33.5 billion cash-and-stock offer to HP, a company more than three times its size.
Xerox Holdings Corporation will host a live audio webcast at 8 a.m. ET on Tuesday, Jan. 28, to discuss 2019 fourth-quarter and full-year results.
Here at Zacks, our focus is on the proven Zacks Rank system, which emphasizes earnings estimates and estimate revisions to find great stocks. Nevertheless, we are always paying attention to the latest value, growth, and momentum trends to underscore strong picks.
(Bloomberg Opinion) -- Xerox Holdings Corp. is best known for inventing the modern photocopier. When it comes to the company’s $33 billion attempt to acquire HP Inc., Chief Executive Officer John Visentin needs to do more than simply copy and repeat the same terms.It has been almost two months since larger rival HP rejected Xerox’s initial bid. Since then, little in the substance of the offer has changed. Xerox has assuaged some of HP’s concerns about financing by obtaining bridge loan commitments for the cash part of the bid. But the fundamental offer remains the same: $17 in cash and 0.137 of a Xerox share for each HP share, for a total value of about $22 a share.Xerox is trying other methods to push a deal through. It has solicited support from HP’s shareholders. Carl Icahn, the activist who’s Xerox’s biggest investor and helped appoint the current board, has taken a stake in HP to build momentum. And, perhaps most significant, the possibility of a proxy fight is looming in which the Xerox camp would submit a slate of directors who are more likely to favor the existing deal terms to replace the current HP board.The problem with that approach comes down to one factor: time. HP announced a restructuring program in October that will cut as much as 16% of its workforce. The longer a proxy battle endures, the longer HP has to carry out its turnaround plan. If it proves successful, its share price might recover, strengthening the Palo Alto, California-based company’s negotiating position.So far, HP has refused to engage in formal discussions. Xerox’s priority must be to change that. The first rule of negotiating is usually to create a deal that both parties feel good about. Were Visentin to sweeten the offer and value HP closer to $35 billion, it would give his counterpart at HP, Enrique Lores, reason to come to the negotiating table. After all, his most recent rejection of the Xerox approach focused solely on the price.How such an increase would be funded is the tricky part. More cash might increase debt beyond investment-grade levels. And even a small bump in the equity component would result in HP shareholders owning the majority of the new entity: Offering 0.18 Xerox share each and the same amount of cash would value HP at $35 billion but give its shareholders 55% ownership. Some version of the latter option seems more viable. HP is by far the bigger company and has previously discussed an acquisition of Xerox.HP could still decide to buy back stock. Repurchasing 20% of its shares at $23 each would generate just as much short-term value for investors and cost less than $7 billion; HP has plenty of capacity to raise the debt to fund such a move. But Lores has not yet invoked that option, suggesting that he perceives some strategic value in a tie-up. That might give Visentin reason for hope. But to realize it, he needs to dig a little deeper.To contact the author of this story: Alex Webb at firstname.lastname@example.orgTo contact the editor responsible for this story: Daniel Niemi at email@example.comThis column does not necessarily reflect the opinion of the editorial board or Bloomberg LP and its owners.Alex Webb is a Bloomberg Opinion columnist covering Europe's technology, media and communications industries. He previously covered Apple and other technology companies for Bloomberg News in San Francisco.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.
Investing.com - Wall Street is set to start strongly higher Thursday, as investors celebrate the restraint shown by U.S. President Donald Trump in proposing further sanctions on Iran rather than military action after missiles strikes against U.S. troops in Iraq. With this deescalation of tensions in the region, attention can focus on the fundamentals surrounding individual stocks. With this in mind, here are some companies which are likely to be in focus today.
(Bloomberg) -- HP Inc. again rejected an unsolicited takeover offer from Xerox Holdings Corp., saying the potential deal “significantly undervalues” the personal-computer maker.Xerox said Monday it had secured $24 billion of financing for a potential acquisition of Palo Alto, California-based HP. The debt commitment “is not a basis for discussion,” HP said Wednesday in a letter to Xerox Chief Executive Officer John Visentin. “The HP Board of Directors remains committed to advancing the best interests of all HP shareholders and to pursuing the most value-creating opportunities.”Xerox said Citigroup Inc., Mizuho Financial Group Inc. and Bank of America Corp. provided the financing for the Norwalk, Connecticut-based printer maker to pursue its $22-per-share cash-and-stock acquisition bid.HP has repeatedly snubbed the offer, saying its announced restructuring plan will provide greater value to shareholders. Xerox has left open the possibility of sparking a proxy fight or introducing a tender offer to close the deal.To contact the reporter on this story: Nico Grant in San Francisco at firstname.lastname@example.orgTo contact the editors responsible for this story: Jillian Ward at email@example.com, Andrew PollackFor more articles like this, please visit us at bloomberg.com©2020 Bloomberg L.P.
(Bloomberg) -- Xerox Holdings Corp. has arranged a $24 billion loan with a group of banks as it continues a pursuit of HP Inc.It’s the largest-ever bridge loan in the technology sector, surpassing International Business Machines Corp.’s $20 billion facility in 2018 for its acquisition of Red Hat Inc., according to data compiled by Bloomberg. The rankings exclude the $51.2 billion bridge loan, which was part of a larger $100 billion debt financing for the failed Broadcom Inc. takeover of Qualcomm Inc. The deal was blocked by President Donald Trump.The Xerox bridge is also the first jumbo acquisition financing to emerge in the investment-grade loan market this year, which will be welcome news to banks hoping for more merger activity in 2020 after the pipeline dwindled last year.Read more: U.S. investment grade loans set for strong 2020 despite slow M&ACitigroup Inc., Mizuho Financial Group Inc. and Bank of America Corp. have provided the debt commitment. It’s comprised of a $19.5 billion 364-day facility, which is expected to be syndicated, and a $4.5 billion 60-day facility intended to be replaced by cash on HP’s balance sheet, according to a filing.Companies typically replace bridge loans with bonds before a deal is completed.The debt pledge is intended “to remove any doubt” about Xerox’s ability to raise financing, according to a public letter sent on Monday from Xerox Chief Executive Officer John Visentin to HP’s board of directors.The letter referenced conversations with HP’s largest shareholders that revealed HP, based in Palo Alto, California, and its advisers had questioned Xerox’s ability to raise the money needed to finance the acquisition.A representative for Xerox declined to comment.Norwalk, Connecticut-based Xerox initially lined up financing from Citigroup in November, Bloomberg reported. But HP rejected the initial offer saying the price was too low. The computer company also declined Xerox’s request to open its financial books and questioned whether the smaller suitor could raise the funding.The $4.5 billion facility offers an initial margin of the London interbank offered rate plus 1.25%, while the opening pricing for the $19.5 billion facility is Libor plus 1.375%. Existing ratings are BB+ from S&P Global Ratings and Ba1 from Moody’s Investors Service.Xerox, known for making copier machines, became a fallen angel in 2018 after both S&P and Moody’s downgraded the company to high-yield amid challenges in the sector and falling revenue. Personal computer maker HP is rated Baa2 by Moody’s and BBB by S&P.Xerox last raised a $2.5 billion bridge loan in 2018 for its purchase of Japan’s Fujifilm with a margin of Libor plus 1.375%. It carried higher ratings of Baa3 from Moody’s and BBB- from S&P at the time.“Though Xerox’s assertion that the combined company is expected to have an investment grade credit rating may remain in question, funding should no longer be a concern following $24 billion in binding financing commitments,” Bloomberg Intelligence analyst Robert Schiffman wrote on Monday.\--With assistance from Lara Wieczezynski and Deana Kjuka.To contact the reporters on this story: Paula Seligson in New York at firstname.lastname@example.org;Jacqueline Poh in London at email@example.comTo contact the editors responsible for this story: Natalie Harrison at firstname.lastname@example.org, Boris KorbyFor more articles like this, please visit us at bloomberg.com©2020 Bloomberg L.P.
Xerox Holdings Corporation sent a letter to the Board of Directors of HP Inc. confirming that it has obtained $24 billion in binding financing.
If Santa rally grips Wall Street in the final days of December, the S&P 500 could see the best year since 1997. These stocks helped the index to hit the highs.
(Bloomberg) -- A Xerox Holdings Corp. shareholder sued Carl Icahn and an investment vehicle he controls, alleging they bought $1.2 billion worth of HP Inc. shares knowing that Xerox was considering acquiring the stock at a premium.The Miami Firefighters Relief and Pension Fund filed the lawsuit in New York state court in Manhattan on Friday, alleging Icahn, Icahn Capital LP and High River Limited Partnership breached their fiduciary duties to Xerox by buying HP stock with the knowledge that “Xerox was either considering making an offer to purchase HP, had already approached HP about a possible merger into or acquisition by Xerox, or of the obvious merits of Xerox’s potential acquisition of HP.”A representative for Icahn was not immediately available for comment.Icahn Capital is Xerox’s largest shareholder, owning almost 11% of the stock as of September 30. Icahn late that month disclosed that Icahn Capital and High River together owned more than 62.9 million shares of HP, making Icahn the fifth-largest shareholder in the company.A previous disclosure by Icahn in August listed no HP stock as of June 30. While the date of Icahn’s purchases were not revealed, an analyst speculated two days after the end of the third quarter that an activist investor might be targeting HP shares citing reasons including a “huge spike” in trading volume without an obvious reason, according to the suit.HP last month rejected an unsolicited, cash-and-stock offer from Xerox worth $22 per share, or about $33 billion. Icahn earlier this month urged HP to push ahead with takeover talks, arguing the hardware maker’s standalone plans amount “to little more than rearranging the deck chairs on the Titanic.” Xerox has taken its case directly to shareholders, saying the takeover would create as much as $1.5 billion in potential revenue growth, according a presentation to investors made public earlier this week.Read More: Icahn Urges HP to Move Forward With Xerox Merger Discussions(Updates with details from complaint.)\--With assistance from Scott Deveau.To contact the reporter on this story: Chris Dolmetsch in Federal Court in Manhattan at email@example.comTo contact the editors responsible for this story: David Glovin at firstname.lastname@example.org, Anthony LinFor more articles like this, please visit us at bloomberg.com©2019 Bloomberg L.P.
The presentation, addressed to HP shareholders, comes two weeks after Xerox said it was planning to take its $33.5 billion buyout bid directly to HP shareholders after HP refused to open its books for due diligence. Xerox said revenue growth of $1 billion to $1.5 billion can be achieved through a three-year roadmap, which involves cross-selling products and streamlining operations. The combined company will have a free cash flow of more than $4 billion in the first year before any synergies, Xerox added.
(Bloomberg) -- Xerox Holdings Corp. believes its proposed HP Inc. takeover would create as much as $1.5 billion in potential revenue growth, according a presentation to HP’s shareholders made public Monday.The printer maker outlined its case for a tie-up between the companies, arguing the combined firm will be worth about $31 a share to HP investors on a pro-forma basis. The merged entity will generate more than $4 billion in free cash flow in the first year before taking any synergies into account, according to the presentation, confirming a report in Bloomberg News.“The value of the transaction goes beyond economics. In consolidating industries, first movers not only win but also have an opportunity to reshape the competitive landscape in an enduring way,” John Visentin, Xerox’s chief executive officer, said in the presentation.Xerox has already said it believes the combination would create roughly $2 billion in synergies, which it argues could be achieved in 24 months. Those savings could be achieved through streamlining their operations by reducing the number of suppliers the combined company would use, cost reductions on information technology and reducing its real estate footprint, among other measures.The presentation for HP shareholders goes further, saying a merger of their operations would allow cross-selling and a unified platform for clients. That could yield an estimated $1 billion to $1.5 billion revenue growth, Xerox said.To get to this amount, Xerox says it has a three-year roadmap that includes generating $540 million to $750 million from pitching complementary products to existing clients, $50 million to $100 million from manufacturing and distribution efficiencies and $350 million to $400 million from integrating HP products into Xerox’s office-as-a-service offerings.It also said there could be $300 million to $400 million in growth from Xerox’s services and software and $150 million to $300 million from offering Xerox’s leasing options to HP customers. A representative for Xerox declined to comment, while a representative for HP couldn’t immediately comment.HP’s shares were little-changed at $20.50 at 9:58 a.m. Monday, while Xerox rose less than 1% to $37.99.HP last month rejected an unsolicited, cash-and-stock offer from Xerox worth $22 per share, arguing it undervalued the company and citing concerns about the health of its smaller rival’s business. Xerox said it planned to take its case straight to HP’s shareholders after the Palo Alto-based hardware maker refused to grant the mutual due diligence it requested.The presentation to be released publicly Monday is the first step in that effort, and Visentin will start meeting some HP shareholders this week to sell the plan. Xerox has asked for three weeks of mutual due diligence in order to validate its case for a tie-up, noting in the presentation it expects no financing conditions and no regulatory risks.JPMorgan Chase & Co. analysts said this month that a merger carried risks and could cause some near-term downside in both stocks. Their Dec. 3 note added that the deal would leave investors more exposed to “a declining printer business.”Activist investor Carl Icahn, who owns as stake in both companies, called on HP last week to push ahead with the talks, calling the deal a “no-brainer.” He accused the company’s directors and management of seeking to preserve their own jobs instead of protecting shareholders’ interests. He argued HP’s standalone plans amount “to little more than rearranging the deck chairs on the Titanic.”Icahn is Xerox’s largest holder with a nearly 11% stake in the Norfolk, Connecticut-based company. He also owns a 4.2% of HP, making him its fifth-largest holder, according to data compiled by Bloomberg.(Updates with details of presentation starting in first paragraph)To contact the reporter on this story: Scott Deveau in New York at email@example.comTo contact the editors responsible for this story: Liana Baker at firstname.lastname@example.org, Fion Li, Ben ScentFor more articles like this, please visit us at bloomberg.com©2019 Bloomberg L.P.
Activist investor Carl Icahn on Wednesday urged the shareholders of HP Inc who agree with the merger with Xerox Holdings Corp to reach out to the personal computer maker's directors for immediate action. "HP shareholders deserve the opportunity to decide for themselves whether a combination with Xerox makes sense before the idea is summarily rejected by HP's board," Icahn said. Icahn, who has 10.85% stake in Xerox and 4.24% in HP, said the combination could yield over $2 billion in cost savings.
(Bloomberg) -- Carl Icahn is urging HP Inc. to push ahead with takeover talks with Xerox Holdings Corp., arguing the hardware maker’s standalone plans amount “to little more than rearranging the deck chairs on the Titanic.”A tie-up between the companies could yield more than $2 billion in synergies, the billionaire investor said in a letter addressed to HP shareholders Wednesday.“It is absurd for the HP board and management team, with such a history of underperformance and missteps, to claim to have had a sudden epiphany and now expect shareholders to trust them to execute a standalone restructuring plan,” Icahn said in the letter confirming an earlier report from Bloomberg.HP last month rejected an unsolicited, cash-and-stock offer from Xerox worth $22 per share, or about $33 billion. Xerox plans to go to HP shareholders to present its case for a deal. Icahn, who owns stakes in both companies, said he was perplexed over HP’s board and management refusing Xerox’s proposal for mutual due diligence to explore a takeover.HP’s decision to stonewall Xerox is also irrational and not in the best interest of shareholders, Icahn said.“I can say without exaggeration that the combination of HP and Xerox is one of the most obvious no-brainers I have ever encountered in my career -- one where activism should not even be necessary at all because the merits of the combination are so obvious to everybody involved,” Icahn said.The deal will likely get done but the process will stretch out for a little while, according to Anand Srinivasan, senior technology analyst with Bloomberg Intelligence.“Partially, the reticence is the structure of the deal,” he said in an interview. “Who’s in charge? Who’s not? Who’s buying whom? The other part of it is to maybe push up the premium and play a little harder to get.”Icahn urged his fellow shareholders to reach out to HP’s directors and let them know that immediate action is needed to explore this opportunity.A representative for Xerox declined to comment. A representative for HP wasn’t immediately available for comment.HP’s shares, which have fallen about 14% over the past year, rose 1.5% in trading Wednesday to C$19.93 a share as of 9:36 a.m. in New York. Xerox’s shares rose nearly 1%.Icahn is the largest shareholder in Xerox, with a nearly a 11% stake. He also owns 4.2% stake in HP, making him its fifth-largest holder, according to data compiled by Bloomberg.HP has said it’s open to exploring a deal, but only if it can do due diligence on Xerox. Xerox, in turn, has requested that HP opens its own books in order to proceed with the talks.Icahn said he sees no downside to granting mutual due diligence. He also wondered whether HP was refusing the request as a delaying tactic so that its chief executive officer and board members could keep their jobs.“I cannot believe that the recalcitrance of HP’s board is driven by any real confidence in its standalone restructuring plan, which the market, shareholders and analysts met with extreme indifference,” he said.HP has argued the proposal undervalues the company. It also raised concerns about Xerox’s ability to raise the necessary capital and its debt load as reasons for not granting Xerox mutual due diligence.(Updates with analayst comments in paragraph seven, share prices in eleventh paragraph.)To contact the reporter on this story: Scott Deveau in New York at email@example.comTo contact the editors responsible for this story: Liana Baker at firstname.lastname@example.org, Matthew MonksFor more articles like this, please visit us at bloomberg.com©2019 Bloomberg L.P.
Investing.com - Xerox (NYSE:XRX) tumbled in midday trade on Tuesday after it lowered its guidance for 2019 due to ending its Fujifilm relationship.
Xerox Holdings Corporation Vice Chairman & CEO John Visentin and Bill Osbourn, executive vice president and CFO, at Credit Suisse Tech Conference.
Jan.09 -- HP Inc. again rejected an unsolicited takeover offer from Xerox Holdings Corp., saying the potential deal “significantly undervalues” the personal-computer maker. Bloomberg's Liana Baker has more on "Bloomberg Markets: The Close."