I keep seeing posts about Icahn doing his best to sell off Xerox for a quick buck with all the layoffs that have been happening. Why would Xerox pursue buying HP if this was the case?
Thoughts?
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Follow the money. XRX will be failing using everyone’s definition of that word within 18 months due to Carl team mismanagement. Only with a combined company will he be able to cash out at the level he expects. HP will be insane to bite at anything less than $44 per share, and even then may be dragged down by Xerox brand association which is quickly tarnishing due to inventory, supply chain and support nightmares.
Icon Enterprises, already a dog lately, stands to be the biggest of losers if they don’t shed Xerox now at a loss. But Carl ego is on full display. Vote your shares, HPQ.
Icahn is asking HP (he prob doesn't care which side buys who since he sits on both sides) to buy market share for $25B. And you wonder why they say no thanks.
Combining Xerox and HP is like taking two smaller piles of sh– and making one bigger one!
As I read recently in an article about HP and Xerox combining... "It's like two garbage trucks colliding". This should be fun.
I believe it is more the case that Xerox wants to force HP to buy them. Then Icahn and his team will all make money and cash out, before it gets real bad at Xerox, especially after cost cutting, smoke and mirror on showing financial progress ends.
It's a technique called "leveraged buyout". Load up an underperforming company with debt, use that to "take over" a slightly-better-performing one, s— out all the assets, and leave a debt-saddled corpse behind.
They need each other. It only makes sense.
I sure hope so!
Xerox is dead if they don’t acquire HP, that’s why.