November 27 (UPI) — John Vicentin, Xerox’s chief executive, sent a letter to HP’s board of directors on Monday, announcing plans to make a $33.5 billion takeover offer directly to HP shareholders,media reported.
“It is not logical for HP to refuse to negotiate,” Mr. Wiesendin wrote. We have made a compelling proposal that will enable HP shareholders to achieve immediate cash value while equally enjoying the significant benefits expected from the merger. Our offer is neither as “harsh nor uncertain” as you call it. We plan to reach out directly to HP shareholders to enlist their support and urge the HP Board to do the right thing. “
The letter was in response to HP’s rejection of Xerox’s latest merger offer, which he said appeared to be beyond Xerox’s reach and questioned Xerox’s current financial position. But Mr. Wiesendin wrote that he believes the deal is good for both companies and their shareholders and can help shape industry leaders, deliver the best products by expanding their product portfolio, invest more in innovation and generate greater returns for shareholders.
Patrick Moorhead, founder and chief analyst at Moor Insights and Strategy, believes HP is now in the upper hand. Xerox is only a third of HP’s size, and revenue sits down, and its demand for HP exceeds HP’s.