Xerox to Nominate Up to 11 Directors to HP’s Board as Part of Takeover Bid
Xerox Holdings Corp. is preparing to nominate as many as 11 directors to HP Inc.’s board, the Wall Street Journal reported yesterday, as the company attempts to advance its $33 billion hostile takeover bid for the personal computer and printer maker.
Xerox bought a small stake in HP in recent weeks which would give it the right to nominate directors for elections to be held at HP’s annual meeting this summer, according to the WSJ, citing sources. They added that Xerox could still decide not to follow through with the nominations, as the deadline to nominate directors is this Friday.
In November, Xerox offered to buy its larger rival with a $33 billion cash-and-stock bid which HP rejected as too low. Xerox has a market value of approximately $8 billion, while HP’s has risen to almost $32 billion since the announcement of the takeover bid.
While there was doubt about Xerox’s ability to raise the necessary cash to complete the deal, the company said earlier this month that it has secured $24 billion in financing for the transaction.
Activist investor Carl Icahn, who holds just under a 5% stake in HP and an almost 11% stake in Xerox, is reportedly pushing for the deal.