It is rumored today that Xerox may have purchased HP Inc., the printer and the computer company. The company issued a public statement this afternoon confirming that talks are ongoing and that it will do what is in the best interests of its shareholders.
The Wall Street Journal got things rolling earlier today when it published a report that Xerox was interested in the printing company, reporting the offer could be worth more than $ 27 billion. There is a lot of money and the company must at least consider it (assuming it is accurate).
HP acknowledged that discussions were underway between the two companies and that it received an offer letter from Xerox yesterday. What's weird about this deal is that HP is the company with a much larger market share of $ 29 billion, while Xerox is just over $ 8 billion. The canary eats the cat here.
Here is HP's full statement on the situation:
As reviewed at HP's recent securities analyst meeting, we have great confidence in our multi-year strategy and our ability to position the company for continued success in an industry development, especially given the many levers which are available to drive value creation.
Against this background, we have from time to time held talks with Xerox Holdings Corporation (NYSE: XRX) about a potential business combination. We have considered, among other things, what will be required to earn a transaction. We recently received a proposal that was sent yesterday.
We have an overview of taking action if there is a better way forward and will continue to act with deliberation, discipline and an eye for the benefit of all our shareholders. .
Hewlett-Packard, one of the first Silicon Valley stalwarts, split into two companies in 201
HP's stock was up 6.36% today from publication. Xerox increased by 3.55%.