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.
HP is not taking the Xerox takeover bid lying down. Backed by strong Q1 results, it is striking back, even teasing a reverse takeover of Xerox instead.
Xerox is pressing ahead with its HP takeover by launching a tender offer of US$24 per share for all outstanding common stock — that’s US$2 more than its original proposal — on March 2, 2020.
Having been rebuffed by HP Inc, Xerox is taking its bid for HP shareholders with a presentation entitled “Xerox + HP: A value-creating combination”.
Just days after Xerox threatened to make its takeover bid hostile by approaching HP Inc’s shareholders, HP Inc has issued a strongly worded statement, “We will not let aggressive tactics or hostile gestures distract us from our responsibility to pursue the most value-creating path.”
At one corner is a company that made cyclostying machines (above) history and whose name became a verb for photocopying. At the other corner is an IT giant that spewed dots per inch and made printing easy at home and in the office. From speculations this week, it looks like the two may become one.
Worldwide page volume from digital hardcopy devices has dipped to 2.98 trillion in 2012 from 3.03 trillion in 2011, a decline of 1.5 percent year over year, according to IDC.
However, in spite of the decline, the world continues to print at a good clip. Developed countries continued their negative page growth trend, driven by digital workflows, adoption of managed print services (MPS) and anemic economies. The silver lining for print volume in developed economies appears to be net new incremental pages from mobile devices.
While it may seem counter intuitive, smartphone and tablet users are generating more print volume compared to non-tablet/smartphone users.
In October 1989, Xerox Singapore Software Centre was opened in Singapore. Dr Wang Kai Yuen remains the Managing Director of the centre, which is now called Fuji Xerox Singapore Software Centre.