HP tells shareholders that Xerox proposal is bad, promises to reach out to Xerox to discuss a combination that would be good for both companies. Icahn acts like he's hell bent on JohnV running the combined company. Let's see if an HP counter offer changes his mind.
https://investor.hp.com/news/press-release-details/2020/HP-Announces-Strategic-and-Financial-Value-Creation-Plan/default.aspx
@hks and @bga
I’ve thought the same thing for months now about Xerox getting picked through for anything left of its value and then claimed.
Brand, patents, viable properties, clientele have value and Xerox employees bring zero value in that scenario
Xerox as an employer is toast no matter how you look at it.
Look after yourself!
@ szi... Icahn will die before HP/Xerox merge. HP has no urgency and they control the cards. They will buy Xerox in pieces for what it’s worth when they want those pieces. Short term, if you are In Xerox, run. Nothing is happening soon to improve Xerox or their product offering. Keep in mind the C8045(and entire line) is 3 years old now. Where is the next gen? Not even being engineered because they have no manufacturer lined up to make the box. Xerox is in serious trouble.
HP is just buying time until Icahn gives up and sells his shares in either HP, Xerox or both.
HP said they are not against a merger, but it will be on their terms and their time. Nothing will happen anytime soon. HP knows Xerox has a timeframe with Fuji to transition manufacturing of equipment and supplies, of which HP will exploit as any acquiring company would do. Near guidance... both Xerox and HP continue cost cutting. When HP steps up to make an offer, likely a year out, it will be for portions of Xerox, not the whole company. Long story short, Xerox employees stand to suffer in the near term and only the core employees fruitful to revenue will likely transition in a new HP/Xerox. Plan accordingly