NEW YORK -- Xerox said it will raise its offer for computer- and printer-maker HP to nearly $35 billion after a lower bid was rejected.
Xerox said Monday that it plans to make the offer about March 2. It will consist of $24 per HP share, including $18.40 in cash and 0.149 Xerox shares for each HP share.
The offer won't be subject to any conditions related to financing or due diligence. The offer represents a 41% premium to HP's 30-day volume-weighted average trading price of $17, Xerox said.
In November, HP rejected a roughly $33.5 billion offer from Xerox, saying that the bid undervalued the company. HP said at the time that it remained open to exploring other options to combine with Xerox Holdings Corp., best known for its copying machines.
But HP has also said in the past that it has many routes it could pursue to create value that aren't dependent on a combination with Xerox.
The companies have struggled as the demand for printed documents and ink has waned, and both are cutting costs.
HP did not immediately respond to a request for comment.
Shares in Xerox rose 1.4% to close at $37.69 in Monday trading while HP Inc.'s stock rose 0.78% and closed at $21.90. HP shares are down 1.3% in the past 12 months.
The iconic, but struggling, Xerox said last month that it planned to nominate 11 directors to replace the HP board in an effort to push the merger through.
HP's shareholders "consistently state that they want the enhanced returns, improved growth prospects and best-in-class human capital that will result from a combination of Xerox and HP," Xerox said in a statement. The two hardware giants have struggled in a world increasingly driven by software, and Xerox has argued the tie-up would revive both companies.
Activist shareholder Carl Icahn, who owns about 11% of Xerox and has a 4.3% stake in HP, has pushed for an agreement. The billionaire has considerable influence over Xerox because he is its largest shareholder. He played a role in appointing Xerox's CEO, who was a former consultant to Icahn, and has ties to members of the board -- including its chairman, who is also the chief executive officer of Icahn Enterprises.
Information for this article was contributed by staff members of The Associated Press and by Molly Schuetz of Bloomberg News.
Business on 02/11/2020