This buying act by johnny and boys are high school boys who need attention. Playing the part of buying HP. Xerox doesn't even have money to maintain there machines in the field. There broke a– company wanting a handout.
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Or does HP just wait for XRX to fold? Sales for XRX are down 50% since 2014, Gross Profits are down about 60%, but Inventory is only down around 10%. XRX has also been later than HP to the 3d print market. XRX tends to be direct sales and services, while HP works through a number of partners.
Sounds XRX is a company with a shrinking market with no ability to grow or even sustain their current marketshare.
No surprise here, Icahn has bought into HP and now owns just over 4% of their stock. Even if this merger makes no sense, he will not take no for an answer...
https://www.cnbc.com/2019/11/14/carl-icahn-takes-stake-in-hp-pushes-for-merger-with-xerox.html
The latest news articles say that HP and Xerox are arguing about which company's management should take over if the companies merge. They are going thru 4 weeks of talks.
XBS, formerly GIS is has been doing parts inventory to buy all the service parts from the service techs and Xerox. All part of the shift to strip Xerox direct - moving techs/service over to the GIS group...aka XBS.
Icahn and Deason are going to earn hundreds of millions of dollars by getting XRX stock to a mid-40s valuation,which is what they said it was worth all along. I'd call that brilliant. Agree they've done nothing to help the company long term, but that wasn't their goal.
Haha. Perhaps. Market isn’t thinking Xerox can buy HP. If that’s Icahn's cronies real plan, they are delusional.
https://www.barrons.com/articles/a-xerox-hp-merger-would-do-little-to-help-two-struggling-companies-51573248485?siteid=yhoof2&yptr=yahoo
Brilliant eh?
The plan all along. Don't forget, some of the barriers to a sale were the poison pills in the FX agreement. Presumably ending that agreement clears the way for a buyer. The HP offer is just a prod to get HP moving.
Icahn and his people are brilliant. Immoral and heartless, but brilliant.
All a plot to sell.
https://seekingalpha.com/news/3517222-hp-offered-purchase-xerox-cnbc
Their. There. They’re. Why so glum?
They can't spend money on parts. There part system is zero inventory....