HP Inc. again spurned a takeover bid by Xerox Holdings Corp. in a terse letter Wednesday.<\/p>\n
\u201cWe reiterate that the HP Board of Directors\u2019 focus is on driving sustainable long-term value for HP shareholders,\u201d the letter from CEO Enrique Lores and Chairman Chip Bergh read. \u201cYour letter dated January 6, 2020 regarding financing does not address the key issue \u2014 that Xerox\u2019s proposal significantly undervalues HP \u2014 and is not a basis for discussion.\u201d<\/p>\n
Earlier this week, Xerox said it had secured funding <\/a>for an unsolicited $33 billion takeover bid.<\/p>\n Xerox
Xerox has since pitched its bid directly to shareholders <\/a>in an effort to increase pressure on HP\u2019s board.<\/p>\n Activist investor Carl Icahn \u2014 who sits on Xerox\u2019s board \u2014 has significant stakes in both companies, and backs the deal, which he has called a \u201cno-brainer.\u201d<\/a><\/p>\n HP, the maker of PCs and printers, was spun off from Silicon Valley\u2019s iconic Hewlett-Packard in 2015, and has a $30 billion market cap that dwarfs Xerox\u2019s $7.7 billion valuation.<\/p>\n HP shares have lost 1.3% over the past year, compared to S&P 500\u2019s
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\n XRX, -0.06%<\/span><\/a><\/span>
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\n \u00a0 first moved to acquire HP
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\n HPQ, +1.31%<\/span><\/a><\/span>
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\n \u00a0 in November, in a bid that was rejected by HP\u2019s board<\/a> in another terse letter, saying the bid undervalued the company and questioning Xerox\u2019s ability to raise enough funds for the deal and the copier company\u2019s future viability. <\/p>\n
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\n SPX, +0.49%<\/span><\/a><\/span>
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\n \u00a0 26% gain, while the Xerox stock has gained 64%.<\/p>\n<\/p><\/div>\n
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