Xerox Accuses HP Board of Disservice to its Stockholders

Xerox Holdings Corporation (Xerox) has issued a statement from its Connecticut office regarding its latest intentions to acquire HP Inc (HP).

While the statement clearly identifies the macroeconomic and market turmoil caused by COVID-19 having created an environment that is not conducive of an acquisition, Xerox makes it very clear there is a more pertinent reason for its decision to withdraw.

“There remain compelling long-term financial and strategic benefits from combining Xerox and HP,” the statement reads. “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.”

Accordingly, Xerox clears states it is withdrawing its tender offer to acquire HP and will no longer seek to nominate its “slate of highly qualified candidates to HP’s Board of Directors.”

The statement clearly identifies that the health, safety and well-being of Xerox’s employees, customers, partners and other stakeholders, and its broader response to the pandemic is also of high consideration

The statement adds that Xerox is grateful for the “significant backing” it received from both Xerox and HP stockholders throughout this process. Xerox also thanked the “talented individuals who agreed to stand for election to the HP Board, making time in their busy schedules to take on this responsibility when HP’s existing Board did not.”

The statement concludes with Xerox thanking the banks which agreed to finance this acquisition, “who never wavered in their commitments, even during the market turmoil caused by COVID-19.”

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