Xerox considers acquiring HP for $27 billion: report
HP has been struggling with its printer business segment recently. The company's segment revenue was down 5% on-year when it reported its Q3 results in August
Reuters Last Updated: November 6, 2019 | 11:59 IST
Xerox Holdings Corp (XRX.N) is considering making a cash-and-stock offer for personal computer maker HP Inc (HPQ.N) at a premium to its market value of about $27 billion (20.96 billion pounds), the Wall Street Journal reported on Tuesday.
The U.S. printer maker's board discussed the possibility on Tuesday, the newspaper said, citing people familiar with the matter.
There is no guarantee that Xerox will follow through with an offer or that one would succeed, it added.
Xerox has also received an informal funding commitment from a major bank, known as a "highly confident letter", WSJ said.
Both U.S.-based companies did not immediately respond to Reuters' requests for comment.
On Monday, Xerox had said it will sell its 25% stake in Fuji Xerox, its joint venture with Fujifilm Holdings (4901.T), for $2.3 billion, after investor activism scuppered a deal involving the two companies.
Xerox had scrapped its $6.1 billion deal to merge with Fujifilm last year after lobbying by two of its main investors, Carl Icahn and Darwin Deason.
HP has been struggling with its printer business segment recently. The company's segment revenue was down 5% on-year when it reported its third-quarter results in August.