XRX - Xerox Holdings Corporation
| Previous Close | 36.52 |
| Open | 36.31 |
| Bid | 36.83 x 800 |
| Ask | 36.84 x 800 |
| Day's Range | 36.31 - 36.95 |
| 52 Week Range | 18.58 - 39.47 |
| Volume | 372,487 |
| Avg. Volume | 2,233,335 |
| Market Cap | 8B |
| Beta (3Y Monthly) | 1.76 |
| PE Ratio (TTM) | 13.00 |
| EPS (TTM) | 2.84 |
| Earnings Date | Jan. 27, 2020 - Jan. 31, 2020 |
| Forward Dividend & Yield | 1.00 (2.57%) |
| Ex-Dividend Date | 2019-12-30 |
| 1y Target Est | 42.67 |
Reuters VideosXerox ready to go hostile
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.
- Bloomberg
HP Board Rejects Xerox Takeover Offer
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."
- Reuters
Xerox expects revenue growth of up to $1.5 billion with HP takeover
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 Woos HP Holders With $1.5 Billion Sales Growth Target
(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 sdeveau2@bloomberg.netTo contact the editors responsible for this story: Liana Baker at lbaker75@bloomberg.net, Fion Li, Ben ScentFor more articles like this, please visit us at bloomberg.com©2019 Bloomberg L.P.
- Reuters
UPDATE 1-Carl Icahn urges HP shareholders to reach out to board
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
Icahn Urges HP to Move Forward With Xerox Merger Discussions
(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 sdeveau2@bloomberg.netTo contact the editors responsible for this story: Liana Baker at lbaker75@bloomberg.net, Matthew MonksFor more articles like this, please visit us at bloomberg.com©2019 Bloomberg L.P.
- Investing.com
Xerox Falls on Downward Guidance for 2019
Investing.com - Xerox (NYSE:XRX) tumbled in midday trade on Tuesday after it lowered its guidance for 2019 due to ending its Fujifilm relationship.
- TEST Business Wire Releases
Xerox CEO and CFO to Speak at the Credit Suisse 23rd Annual Technology Conference
Xerox Holdings Corporation Vice Chairman & CEO John Visentin and Bill Osbourn, executive vice president and CFO, at Credit Suisse Tech Conference.
- Yahoo Finance
Dell CFO says 'pleased' with earnings results
Yahoo Finance speaks with Dell CFO Tom Sweet about its latest earnings and the health of Corporate America.
- TechCrunch
Xerox tells HP it will bring takeover bid directly to shareholders
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 Projects Strong Profit After Spurning Xerox Takeover Bid
(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 ngrant20@bloomberg.netTo contact the editors responsible for this story: Jillian Ward at jward56@bloomberg.net, Andrew Pollack, Alistair BarrFor more articles like this, please visit us at bloomberg.com©2019 Bloomberg L.P.
- Bloomberg
Xerox Ramps Up Pressure on HP, Turns to Holders for Support
(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 ngrant20@bloomberg.net;Scott Deveau in New York at sdeveau2@bloomberg.netTo contact the editors responsible for this story: Jillian Ward at jward56@bloomberg.net, Molly SchuetzFor more articles like this, please visit us at bloomberg.com©2019 Bloomberg L.P.
- Reuters
Xerox prepares to take HP buyout bid hostile
"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.
- Business Wire
Xerox Sends Letter to HP
Your refusal to engage in mutual due diligence with Xerox defies logic. We have put forth a compelling proposal – one that would allow HP shareholders to both realize immediate cash value and enjoy equal participation in the substantial upside expected to result from a combination. The potential benefits of a combination between HP and Xerox are self-evident.
- Reuters
Xerox threatens hostile bid unless HP opens its books
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.
- Business Wire
Xerox Issues Letter to HP
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.
- Zacks
Stocks Little Changed...Except for the New Highs
Stocks Little Changed...Except for the New Highs
- Bloomberg
HP Doesn’t Need Xerox, Which May Have Been the Point
(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 awebb25@bloomberg.netTo contact the editor responsible for this story: Daniel Niemi at dniemi1@bloomberg.netThis 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.
- Reuters
US STOCKS-Wall St set for weak open after report dents trade optimism
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.
