Xerox considers takeover offer for HP: Report

Xerox’s board reportedly discussed the possibility of acquiring PC maker HP on Tuesday. There is no confirmation on either side as of now.

The company logo for Xerox is displayed on a screen on the floor of the New York Stock Exchange (NYSE) in New York, U.S., March 11, 2019. (REUTERS)

Xerox Holdings Corp is considering making a cash-and-stock offer for personal computer maker HP Inc at a premium to its market value of about $27 billion (£21 billion), the Wall Street Journal reported on Tuesday.

Xerox's board discussed the possibility on Tuesday, the newspaper said, citing people familiar with the matter. There is no guarantee that Xerox will follow through with an offer or that one would succeed, it added.

Norwalk, Connecticut-based Xerox has also received an informal funding commitment from a major bank, the Journal said.

HP does not comment on rumours or speculation, a company spokeswoman told Reuters. Xerox did not respond to a Reuters' request for comment.

On Monday, Xerox had said it will sell its 25% stake in Fuji Xerox, its joint venture with Fujifilm Holdings, for $2.3 billion, after investor activism scuppered a deal involving the two companies.

Xerox had scrapped its $6.1 billion deal to merge with Fujifilm last year after lobbying by two of its main investors, Carl Icahn and Darwin Deason. HP has been struggling with its printer business segment recently, with the division's third-quarter revenue dropping 5% on-year.

In October, it had announced a plan to cut up to 9,000 jobs as part of a restructuring programme aimed at cutting costs.