After facing several rejections from the US printer maker – HP, the company has raised its bid for the acquisition of HP. The Xerox Holdings Corp has raised their bid and has offered to acquire the American company at the bidding price of $24 per share. Despite the resistance from HP, the company is determined for the acquisition. Xerox has planned to offer 0.149 Xerox shares to company. In the recent financial year, share of HP rose to nearly $22.31, which is approximately 3%. However, the share of the Xerox was approximately 1%.
After several discussion on the acquisition of the company, the company has decided to offer another offer for the purchase of HP. The new offer is likely to be announced around March 2, 2020. The amount for the offer is estimated for an amount of $34 billion. In the quest for the acquisition of the company, Xerox had offered a stock and cash offer which was offered at an estimate of $22 per share, or $33.5 billion. While this was made in the last November, however, it was rejected by the American printer manufacturer – HP, since the valuation of the company was less than the actual value. Meanwhile, Xerox was persistent for the acquisition and interacted with the shareholders of HP. It tried to negotiate and tried to form synergies, which could likely lead to the synergies, between the two major printing companies. Meanwhile, Xerox also succeeded in raising an amount of USD $24 billion form the major banks. This will help in pursuing the takeover.
Moreover, several analysts have estimated that the mergers between the printing giants is likely to have an impact on the printing market. In addition, it is predicted that the offer which is given by Xerox is likely to be accepted by HP despite several rejections.