You might have heard regarding the news that Xerox, which is a smaller company compared to HP, wants to take over HP which is one of the biggest printer suppliers worldwide. Now, you might also have made out that both Xerox and HP are competing in the same market. This is also the reason why Xerox wants both them and HP to be combined into a single entity and have a united effort in dominating the market even more.
Now, there is a new report from TechCrunch involving Xerox which is also regarding their bid to takeover HP that was placed recently and rejected by HP’s board as well. In a shocking report, Xerox now wants to fire all the board of directors that were involved in rejecting their bid to takeover HP. It was said at the time of rejection that the HP board “unanimously” rejected Xerox’s bid. So it is not a case of some directors being against the bid but everyone was against it.
Xerox and HP are seen to be playing a game of tit for tat and they have also offered HP a whopping $34 billion which was rejected by HP. Now, they are threatening to take this to their respective stakeholders. Xerox says that it has nominated 11 people to replace the current slate of directors which will replace the current board of directors.
And this has obviously not gone down well with HP. HP says that “We believe these nominations are a self-serving tactic by Xerox to advance its proposal, that significantly undervalues HP and creates a meaningful risk to the detriment of HP shareholders,”
The interesting part about HP’s statement is that the proposal from Xerox “undervalues HP” which tells you that they are looking for an even higher bid which they might agree upon as well.