HP: implements shareholder rights plan against Xerox

(CercleFinance.com) - Shares of HP were broadly unchanged on Friday after the US computer and printer maker said that it would implement a shareholder rights plan that would counter any move from Xerox to take control of the company.


The announcement comes after Xerox declared its intention to initiate a tender offer to acquire all of HP's outstanding shares.

The rights plan - exercisable only if a group acquires 20% or more of HP's share capital - entitles existing shareholders to buy shares of a new series of preferred stock, which would automatically dilute the new shareholder's stake.

Last week, Xerox raised its bid for HP, now offering 24 dollars a share, up from 22 dollars a share previously.

"We are very concerned about Xerox's aggressive and rushed tactics," HP said.

HP shares were flat on Friday morning, while the Xerox stock is down 1.6%.

Copyright (c) 2020 CercleFinance.com. All rights reserved.