Xerox has dropped its hostile takeover bid of HP. After months of hot pursuit, with Xerox bids and HP counter statements, it looks like any deal is off the table — another victim of the COVID-19 pandemic.
In a press statement, Xerox noted that the current global health crisis and resulting macroeconomic and market turmoil caused by COVID-19 have created an environment that is not conducive to Xerox continuing to pursue an acquisition of HP.
“Accordingly, we are withdrawing our tender offer to acquire HP and will no longer seek to nominate our slate of highly qualified candidates to HP’s Board of Directors,” wrote Xerox.
This puts an end to the tender offer worth more than US$30 billion.
Xerox has removed the www.XplusHP.com website set up to provide more detail of the offer and the benefits of the takeover to both companies’ stockholders. This site has been redirected to Xerox’s corporate site.
“While it is disappointing to take this step, we are prioritizing the health, safety and well-being of our employees, customers, partners and other stakeholders, and our broader response to the pandemic, over and above all other considerations,” said the Xerox statement, which reiterated the company’s message that there remain compelling long-term financial and strategic benefits from combining Xerox and HP.
“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,” it added.