US, WASHINGTON (ORDO NEWS) — The American corporation Xerox abandoned further attempts to acquire a larger company HP. This was reported on Tuesday in its electronic version by The Wall Street Journal, citing its own sources.
According to them, Xerox after five months of trying to finally withdraw the offer to buy HP for more than $ 30 billion and abandon the idea of changing through hostile takeover the leadership of this manufacturer of printers and personal computers.
According to the publication, the corporation considered that further attempts to achieve such a goal are impractical due to the extremely unfavorable situation on the market due to the consequences of the pandemic disease caused by the new coronavirus.
According to the newspaper, the HP management refused to merge Xerox three times, explaining that the proposed deal “will significantly weaken the position of HP and therefore is not subject to discussion.”
The company even went to buy back its shares in the amount of $ 15 billion to block a competitor’s possible attempt to take control by buying up securities on the stock market.
In November last year, it became known that Xerox, the manufacturer of photocopiers, made a proposal to acquire HP Corporation, which manufactures computers and other equipment.
Reuters noted that Xerox was ready to pay HP about $ 33 billion. According to recent data, HP’s market capitalization fell from $ 30.96 billion to about $ 25 billion, and Xerox from about $ 8.1 billion to almost $ 4 billion.
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