Xerox may make a cash-and-stock offer for PC maker HP

Xerox Holdings is considering making a cash-and-stock offer for personal computer maker HP at a premium to its market value of about $27 billion, the Wall Street Journal reported on Tuesday.
HP India promotionXerox’s board discussed the possibility on Tuesday. There is no guarantee that Xerox will follow through with an offer or that one would succeed.

Norwalk, Connecticut-based Xerox has also received an informal funding commitment from a major bank.

HP does not comment on rumours or speculation, a company spokeswoman told Reuters.

Xerox did not respond to a Reuters’ request for comment.

Xerox on Monday said it will sell its 25 percent stake in Fuji Xerox, its joint venture with Fujifilm Holdings, 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, with the division’s third-quarter revenue dropping 5 percent on-year.

HP in October announced a plan to cut up to 9,000 jobs as part of a restructuring programme aimed at cutting costs.

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