It’s been reported that Canon will cut its ties with HP Inc if the hostile takeover bid launched by Xerox is successful.
Canon chairman and CEO Fujio Matarai is quoted in Nikkei Asian review as saying that a takeover by Xerox would create a company rivalling Canon’s own business.
HP buys laser printer components from Canon, and is one of the Japanese manufacturer’s biggest customers. The relationship, which involves sharing of technology and IP, is based on trust between the companies’ top management, Matarai adds.
On Monday (2 March 2020), Xerox Holdings launched a tender offer to acquire all outstanding shares of HP Inc for $24.00 per share, comprising $18.40 in cash and 0.149 Xerox shares for each HP share.
HP Inc has confirmed that Xerox has commenced an unsolicited exchange offer to acquire all outstanding shares of HP common stock for consideration consisting of cash, Xerox common stock, or a combination thereof.
The HP board of directors states that it will, consistent with its fiduciary duties and in consultation with its independent financial and legal advisors, carefully review and evaluate the offer to determine the course of action that the board believes is in the best interests of the company and all HP shareholders.