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Xerox Corporation Tries To Acquire HP Inc.

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rjohnson11
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2019/11/09 04:52:49 (permalink)
https://www.bloomberg.com/news/articles/2019-11-06/hp-confirms-xerox-s-takeover-offer-but-isn-t-ready-to-say-yes
 
Xerox Holdings Corporation, a maker of print and digital document products and services, has reportedly made an offer to buy HP - a maker of wide variety of PCs and printers, for as much as 30 billion USD. The decision for HP takeover came after negotiations between HP Inc. and Xerox Corp. that had a topic of "our multi-year strategy and our ability to position the company for continued success in an evolving industry"

Comparing the two companies, HP Inc. has a much larger market capitalization of over 28 billion USD, while Xerox Corp. has a bit over 8 billion USD. However the underlying reasons for this takeover could be that HP possesses a debt valued at around 20 billion USD, which is quite a lot comparing to market cap. Even with good revenue numbers, HP will remove up to 16% of its workforce by 2022, due to the declining business of selling printers. Xerox plans to take over HP in hope to combine the workforce of two companies and lower their combined expenses by as much as 2 billion USD, that Xerox estimates.
 
Personally I don't think Xerox has enough experience for this type of merger, 

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    Cool GTX
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    Re: Xerox Corporation Tries To Acquire HP Inc. 2019/11/09 06:03:47 (permalink)
    It was fun watching this news unfold, while watch the financial channel.  Strange it went public this soon
     
    Seems HP wants to see if anyone else will bring a better offer -or- is it that the executives want - a bigger piece of the pie
     
    Seem odd anyways - what is the synergy ? Why does / Can a 8.6 Billion company buy a 28.9 Billion company ....
     
    Xerox seems to be saying:
         1) we have the better management team
         2) we are better at raising capital

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