HP: rebuffs Xerox offer - again
(CercleFinance.com) - US printer and computer maker HP on Monday rejected a bid by Xerox, which it said was "highly conditional" and "uncertain.
In a letter to Xerox in response to the copier maker's letter on 21 November, HP reiterates that it rejects Xerox's proposal as it "significantly undervalues" the company.
"In particular, there continues to be uncertainty regarding Xerox's ability to raise the cash portion of the proposed consideration and concerns regarding the prudence of the resulting outsized debt burden on the value of the combined company's stock even if the financing were obtained," it warned.
Looking to taint its suitor, HP also pointed out that Xerox has missed consensus revenue estimates in four out of the last five quarters.
The HP shares were up 0.4% after these comments, while Xerox share were down 0.3%.
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