HP says open to exploring bid for Xerox

HP Inc said on Sunday it was open to exploring a bid for US printer maker Xerox Corp after rebuffing a $33.5 billion cash-and-stock acquisition offer from the latter as “significantly” undervaluing the personal computer maker. Xerox made the offer for HP, a company more than three times its size, on Nov. 5, after it resolved a dispute with its joint venture partner Fujifilm Holdings Corp that represented billions of dollars in potential liabilities.

Responding to Xerox’s offer, HP said in a statement that it would saddle the combined company with “outsized debt” and was not in the best interest of its shareholders.However, HP left the door open for a deal that would involve it becoming the acquirer of Xerox, stating that it recognised the potential benefits of consolidation.

“With substantive engagement from Xerox management and access to diligence information on Xerox, we believe that we can quickly evaluate the merits of a potential transaction,” HP said in its statement.

The move puts pressure on Xerox to open its books to HP. Xerox did not immediately respond on Sunday to a request for comment on whether it will engage with HP in negotiations as the potential acquisition target, rather than the acquirer.