HP, which makes computers and printers, said it would cut up to 9,000 jobs or 16% of its workforce: HP said in a letter Wednesday that it will continue to resist a takeover bid from Xerox—which Monday announced it secured financing for a deal— because the proposal significantly undervalues HP, continuing a heated back-and-forth over the future of both struggling printing companies.
In a letter on behalf of HP’s board of directors, the company said that Xerox’s announcement “regarding financing does not address the key issue – that Xerox’s proposal significantly undervalues HP – and is not a basis for discussion.” Xerox announced Monday that it had the backing of Citi, Mizuho and Bank of America for a takeover of HP, assuaging some doubts over whether it would be able raise enough money after HPBut HP still has concerns, including the fact that Xerox’s $33.5 billion offer was too low.
HP has also cited concerns about Xerox’s declining revenue and that a combined company might have too much debt.: Tensions have been rising between the two companies after Xerox made an unsolicited takeover bid for its larger rival in November. Xerox argues that a deal will result in $2 billion in costs savings over the next two years and increased revenue growth of up to $1.5 billion over the next three years.
up to 9,000 jobs or 16% of its workforce by the end of 2022 while Xerox is undergoing a $640 million cost-savings program.We reiterate that the HP Board of Directors’ focus is on driving sustainable long-term value for HP shareholders. Your letter dated January 6, 2020 regarding financing does not address the key issue – that Xerox’s proposal significantly undervalues HP – and is not a basis for discussion.
Business Business Latest News, Business Business Headlines
Similar News:You can also read news stories similar to this one that we have collected from other news sources.
Source: billboard - 🏆 112. / 63 Read more »