Xerox is planning a cash offer for PC and printer manufacturer HP: WSJ

Xerox plans to offer a cash and share offer for HP personal computers and printers, the Wall Street Journal reported late Tuesday night.

The company's board discussed the opportunity on Tuesday, people familiar with the matter told the Journal, adding that Xerox has an informal funding commitment from a major bank.

Xerox, which makes printers and copiers, has a market share of $ 8.05 billion, less than a third of HP's market value of $ 27.27 billion. [1

9659002] A spokesman at HP said the company "does not comment on rumors." Xerox representatives were not immediately available to respond to CNBC's comment request email.

As both companies look to cut costs, sources told the magazine that combining the companies could save more than $ 2 billion in expenses.

Last month, HP said it would cut between 7,000 and 9,000 jobs by the end of fiscal 2022 as part of a broader restructuring plan that it estimates will save a billion dollars a year. This would make up nearly 16% of the 55,000 employees worldwide, according to FactSet.

HP was created after Hewlett-Packard divested its business – Hewlett Packard Enterprise – that sells data storage equipment, servers and other related services. [19659002] Xerox said on Tuesday that it will sell its 25% stake in Fuji Xerox, the joint venture between the company and Japan's Fujifilm, for $ 2.3 billion. Investor activism halted a deal in 2018 that would have merged Xerox to Fuji Xerox and given Fujifilm control, Reuters reported.

Read the Wall Street Journal's story about Xerox's ambitious plans to try to buy HP here.