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2 December 2019 By John Foley Follow @johnsfoley

The smaller copier group where the activist owns 11% says it will go hostile with its $33 bln offer for HP. The bickering aside, it would be more logical for HP to buy Xerox. That could turn out much the same for Icahn, who owns 4% of HP, and for both companies’ other owners.

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Xerox said on Nov. 26 that it planned to take its takeover offer for printer maker HP direct to the target’s shareholders. Xerox has offered $22 per HP share for its larger rival, consisting of $17 in cash and 0.137 new Xerox shares per HP share, equivalent to just under half the merged company.

HP on Nov. 24 rejected the photocopier company’s $32.6 billion cash-and-stock proposal, saying it “significantly undervalues” HP.

HP on Nov. 26 reported $15.4 billion of revenue for the latest quarter, a slight year-on-year increase.

Activist investor Carl Icahn owns a 4% stake in HP, and an 11% stake in Xerox, according to Refinitiv data.

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