BEIJING( 6 (Xinhua) — Xerox is considering buying PC and printer maker Hewlett-Packard, a bold move that could bring two declining tech giants together, according to people familiar with the matter. Xerox is considering a cash-and-stock offer for HP that would be a premium to HP’s $27billion market value, the sources said.
Xerox is now worth about $8.05 billion, and HP has a market capitalisation of about $27.3 billion, more than three times Xerox’s.
The merger could bring more than $2bn in cost savings, people familiar with the matter said, adding that Xerox had secured informal financing commitments from a large bank.
Xerox announced Tuesday that it has sold its 25 percent stake in Fuji Xerox for $2.3 billion. Xerox had previously planned to merge with Fuji Xerox and give it control, but the deal failed because of opposition from activist investors.