Unanimous by HP board. So what's next?
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HP should respond “our completed diligence has already revealed a lack of feasible XRX revenue growth plans for the next 3 years, significant likelihood of decreasing stock price over the same period, high audit risk and inability to extract the synergies that Xerox claims could be achieved. Based on this the board will communicate to HPQ shareholders that a hostile action by Xerox is probable and that voting in favor is highly discouraged. “. Sounds better than “go pound sand, enjoy your 4Q results” doesn’t it?
- 3blz: I was talking Xerox 3D metal. Agree HP has it. But XRX touting as having a viable product.
Replying to @124aQLQr-3blz
3D metals printing by HP not only are they highly successful, but have been on the market for over a year now. Being used at several large production facilities. Lots of videos on YouTube showing the 3D metals printers in use at those places.
I would expect more spin to try to get the share price up, for example metal 3D printing being touted as an offering -even though we know it’s not ready and there hasn’t been an attempt to make it ready. Sad really that the market reacts to false stuff like this.
I would also expect that HPQ demands due diligence examination of the XRX financial and business model and accounting, which would mean any offer is not going to be for all of XRX if any of it.
HP only said nope at that that price.
https://www.benzinga.com/m-a/19/11/14826691/hp-rejects-xeroxs-unsolicited-buyout-offer-open-to-further-discussion
Yep, unanimous it is!
Ever since Icahn and Deason staged their coup with less than 25% of the company's shares by scaring the rest of the Board in submission and then replacing a good chunk of the C-Suite with former HP executives, HP buying Xerox has been the plan all along. Icahn, who was never a patient man in the first place, has less now (maybe because he‘s over 80 and cornered about his legacy?). So, after a year, he's going to push this thing across and this is how he's going to do it, regardless if it makes no business sense to do so. This is all about Carl satisfying his ego and getting the $40 share price for Xerox he promised the world, even if its artificial. He has threatened HP's new CEO and Board with this proposed deal and then went and bought 4.24% of HP's stock. He's going to use that ownership stake like Myles Garrett used his helmet last week and brain (the 'no brainier' comment) the HP Board until they yield.
IConvict and Small Johnson V. are trying to be clever. HP has a new CEO that is no longer in the honeymoon phase, shareholders are going to want to see results soon. By pushing the merger narrative and getting it into the public discourse, wall street responded positively due to the cost savings and synergies that will happen. Since both companies compete in a dying industry it's better to let the two join forces and eat away at the remaining revenue left rather than split the sc-aps.
Once there's a stock share price drop at HP or any negative outlook on the future the HP CEO is going to think back on merging with Xerox so he can show some positive results and that his leadership is effective and steering the company towards better shareholder value. IConvict will make his money, and Johnny V will enjoy his golden parachute. What's funny is Johnny is so dense he probably thinks he has a cushy leadership role set-up at HP to hang out with his colleagues who already fired him once.
The whole exercise was nothing more than a play for another intended result; whether to increase/decrease Xerox or HP stock value, a ploy to get HP or someone else to buy Xerox, etc. Nothing but games and gains for icky
Since Xerox is a competitor of HP in the print sector, HP will love to see Xerox go under. More market share for HP. There is no reason for HP and Xerox to join. The only one who wants that to happen is Ichan so he can make some quick cash on his stocks. He has done that before, many, many times with other companies and those companies went under. He is just bad news all around.
Losers in this will be the workers from both dying companies ....
HP is not as desperate as zerox is, they can smell the fear so now HP will take over us ,on their terms..gut feeling..10 years xerox will just be a brand name.
Xerox lost 10% revenue or 1 billion year over year. If they want to increase revenue they could better spend 30 billion and buy some medical equipment manufacture or some other gadget in a growing industry and utilize the technicians to service. The only synergies I can see are getting rid of a C suite of managers.
This will drag on until both companies are in the dumpster, and at that point it will be too little too late. They will then consolidate, nobody will care, and die slowly.
There is no doubt HP will purchase Xerox. It is just a matter of time
It really doesn’t matter from financial perspective whether Xerox buys HP or HP buys Xerox.? If Xerox buys HP the debt incurred will be offset by joint company cash.
This is a ploy for leadership on joint company and board positions. Acquiring company board
are more likely to stay on. Shareholder interest is really not part of this equation.
My prediction - by mid December HP will have a bid out for Xerox
i think sears might make a offer for Xerox.
Icahn owns 4.4% of their shares and knows how to force his hand. Combination of some sort still likely.
Or they can wait and watch the implosion.
HP will buy Xerox. Xerox Shares price @38.94. It is like a chess game.