What could possibly go wrong? I wonder how often these sort of things succeed.
https://finance.yahoo.com/news/xerox-plans-seek-control-hp-034838262.html
10 replies (most recent on top)
HP’s response is too long in the tooth. Indicative of fear. We all know this WILL happen. Whether it SHOULD is a different story. What’s guaranteed? Once it DOES happen, more redundancies will occur.
Full statement from HP
January 23, 2020
No Shareholder Action Required at this Time
PALO ALTO, Calif., Jan. 23, 2020 (GLOBE NEWSWIRE) – HP Inc. (NYSE: HPQ) today confirmed that Xerox Holdings Corporation has announced its intent to nominate 11 candidates to stand for election to the Company’s Board of Directors at the HP’s 2020 Annual Meeting of Stockholders (the “2020 Annual Meeting”). Xerox has previously submitted an unsolicited proposal to acquire HP, that the HP Board unanimously rejected.
HP issued the following statement:
We believe these nominations are a self-serving tactic by Xerox to advance its proposal, that significantly undervalues HP and creates meaningful risk to the detriment of HP shareholders.
The HP Board of Directors is committed to serving the best interests of all HP shareholders and to pursuing the most value-creating path. Value creation for HP shareholders is not dependent on a Xerox combination. There are numerous opportunities available to HP to drive sustainable long-term value. These include the execution of HP’s strategic plan, and the deployment of its strong balance sheet for increased share repurchases of its significantly undervalued stock, and for value-creating M&A. Xerox’s proposed transaction attempts to use HP’s financial capacities for the benefit of Xerox shareholders.
We believe that Xerox’s proposal and nominations are being driven by Carl Icahn, and his large ownership position in Xerox means that his interests are not aligned with those of other HP shareholders. Due to Mr. Icahn’s ownership position, he would disproportionately benefit from an acquisition of HP by Xerox at a price that undervalues HP.
Mr. Icahn has meaningful influence over Xerox and its Board of Directors given this ownership position; the role he played in the appointment of Xerox’s current CEO, who is a former Icahn consultant; and the ties Mr. Icahn has to members of the Xerox Board, including Xerox’s Chairman, an Icahn employee.
The HP Board is unwavering in its commitment to HP shareholders and will continue to take all appropriate actions to advance and protect HP shareholders’ best interests.
About HP’s Board of Directors
HP benefits from an independent Board, including an independent Chairman and 10 of 12 independent directors, with the remaining members being the Company’s current and former CEOs.
HP’s Board includes world-class directors who bring relevant skills and proven experience in advancing HP’s strategy across personal systems, print and 3D, and driving sustainable, profitable growth and value creation. This expertise includes:
Developing and implementing cost cutting plans to support both profitable growth and brand competitiveness in global markets as demonstrated by HP’s performance over the past three years, which includes $10.5 billion in revenue growth and $12.9 billion in cumulative cash flow from operations;
Evaluating and executing strategic mergers and acquisitions, including successfully overseeing complex integrations, including the Samsung printing business consolidation transaction;
Assessing capital allocation opportunities to maximize returns;
Developing disruptive technology and driving innovation across the consumer and enterprise technology landscape; and
Serving in executive leadership and corporate operating and strategic development roles for other large, global companies, including six current or former CEOs.
HP’s highly qualified directors also have experience in finance and accounting; government and public affairs; scientific research, product development and issues management; corporate governance; and international business in key regions where HP operates around the world.
The HP Board will review the proposed Xerox nominees, and respond in due course. Additional information regarding the HP Board and its recommended slate of director nominees will be presented in the Company’s definitive proxy statement and other materials, to be filed with the U.S. Securities and Exchange Commission and mailed to all shareholders eligible to vote at the 2020 Annual Meeting. The date of the 2020 Annual Meeting has not yet been announced. HP shareholders are not required to take action at this time.
Goldman Sachs & Co. LLC and Guggenheim Securities, LLC are serving as financial advisors, and Wachtell, Lipton, Rosen & Katz is legal advisor, to HP.
HP statement on this:
https://investor.hp.com/news/press-release-details/2020/HP-Issues-Statement-Regarding-Director-Nominations-from-Xerox/default.aspx
List of Ichan failures https://www.businessinsider.com/carl-icahns-sad-track-record-2009-10
He know's he's trying to pitch a polished t–d and merging with HP is the only way he will get positive ROI from this Xerox fiasco. I don't think HP leadership is as dump as he thinks, especially since the former hp id–ts are now running Xerox (Feldy and Vissey)
Ichan has done this before with many other companies. He has failed too, many, many times.
Dont underestimate HP, they have plans to ward off this attack,Icahn is old skool, his methods are not smart or new,The 'union' will maybe happen,but on HP's terms,meanwhile the clock is ticking.
Icahn has done this many times. As much as I hate what he's doing he knows how the game is played and doesn't lose. The HP deal will go through one way or another.
I think it succeeded on Xerox board.
HP has already hired lawyers to fight this.