Clear paper jam

6 January 2020 By Richard Beales Follow @richardbeales1

The copier group now has bank commitments for $24 bln of debt for its Carl Icahn-backed $33 bln bid to buy larger rival HP. That removes one big question about a proposed deal that still seems the wrong way around. It puts pressure on HP to talk, or come up with something better.

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Copier maker Xerox said on Jan. 6 it had secured $24 billion in financing for its $33 billion takeover offer for HP, a deal that the personal computer and printer group is opposing.

The banks providing the commitment are Citigroup, Mizuho and Bank of America.

HP rejected Xerox’s $22-per-share offer in November, saying it significantly undervalued the company. Xerox then said it would take the offer directly to HP's shareholders.

Activist investor Carl Icahn, who has a 4.2% stake in HP and a 10.9% stake in Xerox, in December urged HP shareholders who support a merger with Xerox to push the PC maker's directors to engage in discussions on a deal.

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