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According to foreign media reports, due to the impact of the new crown virus epidemic, Xerox said on Friday that it intends to suspend negotiations on the acquisition of HP. The company is still advancing its takeover offer and proposed board of directors, but it says its focus now is on the health of employees, customers and channel partners.
Xerox CEO John Visentin said: “We are closely monitoring the outbreak reports from governments and healthcare leaders around the world, as well as working with business colleagues to minimize the spread and impact of the virus. Therefore, we believe that It is prudent to postpone additional presentation releases, media interviews, and meetings with HP shareholders so that we can focus our time and resources on protecting Xerox’s various stakeholders from the impact of the new crown epidemic.”
Earlier this month, the US personal computer manufacturer Hewlett-Packard rejected a $35 billion adjusted acquisition offer from well-known printer manufacturer Xerox on Thursday, local time, saying it underestimated the company’s value.
Initially, Xerox was rejected by HP because the offer price was too low. In February, Xerox increased its bid by $2 to $24 per share.
Hewlett-Packard Chairman of the Board of Directors Chip. Chip Bergh said that the acquisition offer greatly underestimated the value of HP and brought disproportionate benefits to Xerox shareholders relative to HP shareholders. The urgency of Xerox’s takeover offer shows that the company is eager to acquire HP in order to solve the problem of continued business decline. Xerox will then need unrealistic and unachievable synergies, and this will endanger the entire company.