Xerox hits a paper jam with its HP takeover bid

HP has turned down a $33bn bid from rival Xerox, insisting it is worth more. But a merger seems likely before too long. Matthew Partridge reports.

HP Inc Announces It Will Cut 9,000 Jobs Over 3 Years In Restructuring Plan

HP should be buying Xerox, not vice versa
(Image credit: 2019 Getty Images)

HP's board has "unanimously" decided to reject a $33bn $22-a-share bid from rival Xerox, on the grounds that it "significantly undervalues" the computer hardware giant, says Mark Vandevelde in the Financial Times. At the same time, HP's board has indicated that the door "remains open" to "a potential combination" of the two companies, demanding "more information about Xerox's business prospects and the scale of any potential synergies". In making the bid for HP, which involves a mixture of cash and shares, the office equipment provider has been trying to capitalise on a rally in its shares, which have climbed by 47% in a year.

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Dr Matthew Partridge
Shares editor, MoneyWeek

Matthew graduated from the University of Durham in 2004; he then gained an MSc, followed by a PhD at the London School of Economics.

He has previously written for a wide range of publications, including the Guardian and the Economist, and also helped to run a newsletter on terrorism. He has spent time at Lehman Brothers, Citigroup and the consultancy Lombard Street Research.

Matthew is the author of Superinvestors: Lessons from the greatest investors in history, published by Harriman House, which has been translated into several languages. His second book, Investing Explained: The Accessible Guide to Building an Investment Portfolio, is published by Kogan Page.

As senior writer, he writes the shares and politics & economics pages, as well as weekly Blowing It and Great Frauds in History columns He also writes a fortnightly reviews page and trading tips, as well as regular cover stories and multi-page investment focus features.

Follow Matthew on Twitter: @DrMatthewPartri