Xerox's unsolicited attempt to acquire HP entered a new phase on Monday as the printing and imaging giant officially launched a tender offer to buy up all of HP's outstanding shares of stock.
Xerox had previously said it would launch the tender offer on or around March 2. The company is offering HP shareholders $18.40 in cash, along with 0.149 shares of Xerox stock for each share of HP's stock. The deal values HP at approximately $34 billion.
"Our proposal offers progress over entrenchment," said Xerox Chief Executive John Visentin, in a statement about the tender offer. Visentin said the proposed deal would result in "significant, long-term upside through equity ownership in a combined company with greater free cash flow to invest in growth and return to shareholders."
In response, HP said in a statement that its board would review Xerox's offer, but added that, "HP shareholders are advised to take no action at this time pending the board's review and evaluation of the offer."
Xerox first launched its unsolicited bid for HP in November 2019. However, HP has rebuffed all of Xerox's bids on the grounds that Xerox has continually undervalued HP. At the time of Monday's stock market close, HP had a market capitalization of $31.3 billion, while Xerox was valued at $7.14 billion.
Last week, HP said it would buy back $15 billion worth of its stock as part of an effort to appeal to its shareholders and stymie Xerox's takeover attempt. HP has also launched a poison pill plan that is meant make it more difficult for any company to take HP over through purchases of the company's stock.
