Xerox is pursing its attempt to buy out HP Inc, despite HP adopting a shareholders rights plan meant to block a hostile takeover.
Xerox has raised its offer for HP shares to $24.00, equating to about $34-billion in cash and Xerox stock.
Xerox intends to launch a tender offer on or around 2 March 2020 for all of the outstanding shares of common stock of HP Inc. The price of $24.00 per share comprises $18.40 in cash and 0.149 Xerox shares for each HP share.
At the same time, Xerox is also putting forth a slate of 11 directors for HP shareholders to vote upon at the next annual shareholders meeting.
Meanwhile, HP says a “poison pill” will be triggered if any outside group acquires 20% of HP’s stock, upon which shareholders will be able to buy additional HP shares at a discounted price.
This would effectively dilute the value of the ownership group’s stake.