|Bid||37.87 x 800|
|Ask||37.88 x 1200|
|Day's Range||37.70 - 38.47|
|52 Week Range||18.58 - 39.47|
|Beta (3Y Monthly)||1.76|
|PE Ratio (TTM)||13.32|
|Earnings Date||Jan. 27, 2020 - Jan. 31, 2020|
|Forward Dividend & Yield||1.00 (2.57%)|
|1y Target Est||42.67|
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.
Xerox fired the latest volley in the Xerox -HP merger letter wars today. Xerox CEO John Visentin wrote to the HP board that his company planned to take its $33.5 billion offer directly to HP shareholders.
(Bloomberg) -- HP Inc. gave a profit forecast that topped Wall Street estimates, projecting optimism that a broad restructuring will pay off while spurning a takeover offer from Xerox Holdings Corp.Profit, excluding some items, will be $2.24 a share to $2.32 a share in fiscal 2020, the Palo Alto, California-based company said Tuesday in a statement. Analysts, on average, estimated $2.24, according to data compiled by Bloomberg. In the fiscal fourth quarter, the hardware maker’s sales and adjusted profit topped analysts’ projections.HP’s earnings report comes in the midst of an increasingly contentious debate with Xerox about a blockbuster combination that would reshape the printing industry. Xerox said Tuesday it plans to go directly to HP’s shareholders, adding that HP’s refusal to engage on the $22-a-share offer “defies logic.”On Sunday, HP reiterated its stance that it has many options to create value for shareholders, other than accepting the offer valued at more than $33 billion in cash and stock, and wasn’t “dependent on a Xerox combination.”“The results show that our strategy is working and we’re driving both short- and long-term value creation,” Chief Executive Officer Enrique Lores said in a press briefing.Fiscal fourth-quarter revenue came in at $15.4 billion, little changed from a year ago, and ahead of analysts’ average estimate of $15.3 billion.Shares gained about 2.5% in extended trading after the results were announced. Earlier, the stock closed at $20.06 in New York and has declined about 2% this year.Xerox has made a move for HP to consolidate the printing business at a time when both companies are stumbling. HP’s printing division, a major source of profit, has seen falling sales because of weaker demand for ink supplies. HP has announced a major restructuring to stabilize the company, which could result in as much as a 16% reduction of its workforce by the end of fiscal 2022.“Related to Xerox, I feel like we have seen this movie before when Carl Icahn meddled with Dell in a similar way,” said Patrick Moorhead, an analyst at Moor Insights & Strategy. “Xerox is a third of the size of HP, has been steadily declining in revenue, is running out of options, and needs HP more than HP needs it.”In the period ended Oct. 31, sales in the printing division fell 6% to $4.98 billion, with ink supplies dropping 7%. Consumer revenue declined 10% and commercial sales decreased 2%.“We continue to lead in a tough market,” Lores said of the printing industry. “We continue to grow in the categories that we consider important,” such as managed print services and instant-ink delivery services.Revenue from personal computers increased 4% to $10.4 billion, with 8% growth in commercial revenue offsetting a 4% decline in consumer sales. Corporate clients are upgrading their computers to adopt Microsoft Corp.’s Windows 10 operating system.(Updates with comments from analyst in the ninth paragraph.)To contact the reporter on this story: Nico Grant in San Francisco at email@example.comTo contact the editors responsible for this story: Jillian Ward at firstname.lastname@example.org, Andrew Pollack, Alistair BarrFor more articles like this, please visit us at bloomberg.com©2019 Bloomberg L.P.
(Bloomberg) -- Xerox Holdings Corp. said it plans to go directly to HP Inc. shareholders to present its case for a tie-up, in its latest push for a combination that is also backed by Carl Icahn.In a letter to HP’s board Tuesday, Xerox said it won’t apologize for its “aggressive” tactics in pursuing HP, after being spurned twice.Xerox will go straight to stakeholders “to solicit their support in urging the HP Board to do the right thing and pursue this compelling opportunity,” the Norwalk, Connecticut-based company said. “Your refusal to engage in mutual due diligence with Xerox defies logic.”Xerox has not specified how it will proceed with its pursuit of HP. There are several avenues it may choose, including a hostile takeover through a tender offer or a proxy fight, with the one-month window to nominate directors to the board opening on Dec. 25.HP did not immediately respond to a request for comment.Xerox slid less than 1% to $38.47 at 10:09 a.m. while HP fell 2% to $19.73 in New York.Both companies have bristled over due diligence. HP has said it’s open to exploring a deal, but only if it can do due diligence on Xerox to ponder an acquisition of the photocopier maker. Xerox gave HP until 5:00 p.m. Monday to agree to “mutual confirmatory due diligence.” Ahead of the deadline, HP questioned the health of Xerox’s business and whether it could raise the funding necessary for a transaction.“It is clear in your aggressive words and actions that Xerox is intent on forcing a potential combination on opportunistic terms and without providing adequate information,” HP said Sunday in a letter. “Your now-public urgency to accelerate toward a deal, still without addressing these questions, only heightens our concern about your business and prospects.”HP’s board of directors has unanimously rejected Xerox’s $22-a-share bid, valued at more than $33 billion in cash and stock. The board said it had significant questions about the trajectory of Xerox’s business and that Xerox would saddle the combined entity with too much debt if it were the acquirer.HP has said it has many options to create value for shareholders, including other merger and acquisition opportunities and share buybacks.Backers of a combination of the aging technology stalwarts include investor Icahn, who disclosed a 4.2% stake in HP in the third quarter, according to regulatory filings. Icahn, who owns a nearly 11% stake in Xerox, has said he supports a tie-up between both companies.(Adds additional context in fourth paragraph.)To contact the reporters on this story: Nico Grant in San Francisco at email@example.com;Scott Deveau in New York at firstname.lastname@example.orgTo contact the editors responsible for this story: Jillian Ward at email@example.com, Molly SchuetzFor more articles like this, please visit us at bloomberg.com©2019 Bloomberg L.P.
"We plan to engage directly with HP shareholders to solicit their support in urging the HP Board to do the right thing and pursue this compelling opportunity," Xerox said in a letter to HP's board. HP on Sunday rejected Xerox's $22 per share offer that consists of $17 in cash and 0.137 Xerox share for each HP share, saying the offer "significantly undervalues HP". The computer maker also accused Xerox of using aggressive words and actions to force a potential combination on opportunistic terms and without providing adequate information.
HP on Sunday rejected Xerox's offer of $22 per share, saying it undervalued the company, and that it was open to exploring its own bid for the U.S. printer maker. "We are confused by this reasoning in that your own financial adviser, Goldman Sachs & Co, set a $14 price target with a 'sell' rating for HP's stock after you announced your restructuring plan," Xerox wrote in its letter to HP. "Unless you and we agree on mutual confirmatory due diligence to support a friendly combination by Nov. 25, Xerox will take its compelling case to create superior value for our respective shareholders directly to your shareholders," the company said in the letter.
We were very surprised that HP’s Board of Directors summarily rejected our compelling proposal to acquire HP for $22.00 per share, comprising $17.00 in cash and 0.137 Xerox shares for each HP share, claiming our offer "significantly undervalues" HP. While we are glad to see that HP's Board of Directors acknowledges the substantial merits of a business combination between Xerox and HP and are open to exploring the value opportunity for our respective shareholders, your response lacks a clear path forward.
(Bloomberg Opinion) -- After HP Inc. rebuffed Xerox Holdings Corp.’s attempted $34 billion takeover attempt, don’t be surprised if the printer company’s next step is to say, “You don’t buy us, we buy you.” But don’t expect any offer to be generous.A counteroffer from its bigger rival may have been Xerox’s plan all along. The two companies have been involved in tentative talks about a combination at various times over the past few years. Xerox’s ploy, which would have involved taking on considerable debt, looks to have at least succeeded in bringing HP back to the negotiating table.The problem for Xerox Chief Executive Officer John Visentin is that HP holds most of the cards. Xerox is significantly smaller: Before takeover talks resurfaced, HP’s $28 billion market capitalization made it more than three times as large. The debt to fund the deal would have been secured against HP’s own free cash flow.That means HP could just as readily use its debt capacity to buy back its own shares. Repurchasing 20% of the stock at $23 a share would cost less than $7 billion, represent a premium to the offer from Xerox and still leave HP’s net debt well below twice its estimated 2020 earnings before interest, taxes, depreciation and amortization. Were Xerox the acquirer, debt at the combined entity would rise above four times Ebitda.In the letter rejecting the offer on Sunday, HP CEO Enrique Lores and Chairman Chip Bergh alluded to the possibility, saying they could deploy their “strong balance sheet for increased repurchases.” In essence, Xerox’s competing bidder for HP is HP itself. The Palo Alto, California-based company could generate just as much short-term value for its existing shareholders as the Xerox bid.The challenge for Xerox is to convince HP that a counteroffer makes sense. To do that, it will need to demonstrate either that a combination would generate healthier returns than HP would with a share buyback or that the companies will be stronger in the long term if they team up. Ideally, it does both.Xerox contends it has identified $2 billion in savings, most of which would likely come from firing a lot of people in administrative and R&D jobs. An offer from HP at a 30% premium to Xerox’s current share price would cost it close to $11 billion. Based on analysts’ earnings estimates, that might generate returns after three years of just more than 13%. That’s more than Xerox’s cost of capital but considerably less short-term value than HP could generate through a buyback. Even at a premium to its average price over the past year, returns would still be around only 15%.That means Xerox would have to make serious concessions on price, including accepting a bid that leans more heavily on stock than cash, with the expectation that shareholders benefit from the uplift. Investors might prefer that anyway: the two companies share nine of their top 20 shareholders in common.HP’s low debt is the reason Xerox could think of a takeover to begin with. It also gives the company strong reasons to walk away.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/opinion©2019 Bloomberg L.P.
Wall Street's main indexes were set for a subdued open on Monday after a report stoked fresh fears over the possibility of a U.S.-China trade deal. The mood in Beijing about a deal was pessimistic due to President Donald Trump's reluctance to roll back tariffs, which China believed the United States had agreed to, CNBC reported, citing a government source. Futures were higher ahead of the report after Xinhua over the weekend said that Washington and Beijing had held "constructive" talks.
HP stock has gained about 10% and those of Xerox around 7% since Nov. 5, when the first news reports surfaced on Xerox's $33.5 billion (£25.8 billion) cash-and-stock offer to buy bigger rival HP. The printer industry has been in decline for years as growth in purely electronic communication cuts the need for printed letters and documentation.
Xerox is ready to go hostile. The printer and copier maker said Tuesday it was planning to take its $33.5 billion buyout bid directly to HP shareholders. In a letter to HP's board, Xerox said, "We plan to engage directly with HP shareholders to solicit their support in urging the HP Board to do the right thing and pursue this compelling opportunity." HP's refusal to open its books for due diligence before a Monday deadline triggered Xerox's latest response. It all began when Xerox made a bid to buy its much larger rival on November 5. HP, which makes printers and printing supplies, rejected Xerox's $22 per share offer, saying it "significantly undervalues" HP and would saddle the combined company with what it termed "outsized debt." Last week, Xerox threatened to take its bid hostile, if HP did not agree to a "friendly" discussion and open its books before Monday. Shares of HP fell to $19.74 a share in early trading Monday. Xerox drifted lower.
Nov.18 -- HP Inc.’s board unanimously rejected Xerox Holdings Corp.’s unsolicited takeover proposal, saying the $22-a-share offer is too low. But HP did say it's still open to discussing a merger. Bloomberg's Liana Baker reports on "Bloomberg Markets."
HP says it's open to exploring a bid for US printer maker Xerox ... In a move that could turn the tables on Xerox's own bid for HP. Responding to that on Sunday (November 17), HP said the Xerox offer 'significantly' undervalued the personal computer maker. Adding that at a cash-and-stock offer of 33.5 billion dollars, Would saddle a combined company with - quote - 'outsized debt'. But HP is still open to a deal where it would buy Xerox, it said. It could be a bold move - and a major test - for HP's brand new boss, Enrique Lores Who took over this month against a background of struggling printer sales. Xerox has seen its stock rally since John Visentin took the helm last year ... Though HP said on Sunday that Xerox's declining revenues since mid 201 raise 'significant questions' over its future.