The Covid-19 will have been due to the attempt of a TAKEOVER bid from Xerox to HP. In the unfavourable context of the health crisis, the ex-candidate buyer gives up its fight against the board of directors of HP, without hiding his bitterness. Back on this series, which lasted almost six months.

The final episode of the series, “Xerox wants to redeem HP” was broadcast yesterday in the United States. Jet lag forces, the French distribution took place on 1 April and the series ends with the abandonment of the TAKEOVER of Xerox, in the context of the present health. “The Covid-19 has created an environment that is not conducive to Xerox to continue the acquisition of HP Inc. Accordingly, we are withdrawing our offer of purchase from HP and do more to offer our list of highly qualified candidates to the board of directors of HP, ” says Xerox by way of a press release.

The aspirant buyer said he preferred to devote himself to the management of the pandemic, but does not hide his bitterness : “The combination of Xerox and HP still has financial advantages, strategic and persuasive in the long term. The refusal of the board of directors of HP to engage in a meaningful way for many months and his tactics of delay time continuously have done much harm to the shareholders of HP, who have shown huge support to the transaction. ”

HP still and always impassive

For its part, HP remained impassive to the announcement of its competitor, as evidenced by the reaction he has published : “We remain firmly committed to creating value for the shareholders of HP. HP is a solid company that occupies a leading position on the market of the personal systems, printing, 3D printing and digital manufacturing. We have a cash and a balance sheet healthy which allow us to respond to unforeseen challenges such as the global pandemic current, while keeping strategic options for the future. “And thus ends this soap opera that lasted for almost six months.

It all started in early November 2019, when Xerox launched its first takeover offer to the general surprise. She values HP 27 billion, an amount more than three times higher than its market capitalization. While the discussions with HP, who is said to have nothing requested, starting to get soft, Carl Icahn invests 1.2 billion$ in HP mid-November and grows to the redemption by Xerox.

Revelations and drama

After heated exchanges and threats of a TAKEOVER bid hostile on the part of Xerox for a month, the latter starts the hostilities in mid-December by contacting directly the shareholders of HP to introduce them to the benefits of a merger. In the beginning of February 2020, and in front of a HP who always turned a deaf ear to his advances, Xerox notes 22 to$ 24 per share the amount of his bid. Nothing worked for Hewlett Packard, which remains quiet, even at the official announcement of a TAKEOVER bid in good and due form of his competitor. The shareholders of HP would have had until April 21 to accept the offer of Xerox.

Meanwhile, revelations and drama are also products. Regulatory documents from HP have shown that Xerox wanted to be bought out by its competitor before November 2019. After agreeing to provide HP with documents that would have allowed them to consider more advanced discussion, it is Xerox, which closed the trade around its possible acquisition and then move on to the offensive. Just after the launch of the OPA official, Canon gets in the way, and by the voice of its CEO. The latter declares to the press that Canon would provide HP with the components if the TAKEOVER of Xerox ended. During this period, HP has remained right in his argument initial, hammering on the 27 and then 35 Md$ proposed sub-assess its value.

I’ll be back ?

HP spell so the winner of this battle whose twists and exchanges between the two companies were worthy of a production of Netflix. After the release of Xerox, it is the crisis linked to the coronavirus which has led to its abandonment. It may be that party discount for the group. To be continued ?