However, HP did not suggest so subtly that it was open to a better deal. The HP board told Xerox that "substantial commitment" from managers and access to relevant information can help it measure the value of a deal. It is not averted to be procured, but it will know that every purchase will make sense.
The offer appears to have been requested by activist investor Carl Icahn, who is known for trying to push companies together. He recently bought a $ 1[ads1].2 billion stake in HP and owns a 10.6 percent stake in Xerox, and has not been shy about arguing that a combined HP-Xerox will both save money and thrive in the print world.
HP has reasons to both give in and endure. In October, it announced plans to cut up to 9,000 jobs (about 16 percent of today's employees) between now and the end of the fiscal year 2022. It's not in serious strain when profits grew this summer, but it clearly wants to tighten the belt. At the same time, sales to Xerox would mark the end of an era – one of Silicon Valley's oldest companies would lose some control over fate. This would not be a trivial move for HP, even if it made sense financially.