Printer maker Xerox Holdings has offered $33 billion in cash and stock for computer giant HP, the Wall Street Journal reported citing sources.
The potential target confirmed the offer but did not elaborate on the price. HP said that it will review the proposal “with an eye towards what is in the best interest of all our shareholders.” HP will consider the offer before responding, a source said.
According to those close to the situation, Xerox’s offer stands between $22 and $23 per share in cash and stock. Citigroup will provide the cash portion of the transaction, the sources added.
As part of the takeover efforts, Xerox said that it will offload its 25% stake in a joint venture with Fujifilm for $2.3 billion. Last week, former HP’s imaging president, Enrique Lores, was appointed CEO of the computer giant.
Xerox said on Tuesday it would sell its 25% stake in the joint venture for $2.3 billion. Fujifilm agreed to drop a lawsuit against Xerox.
HP’s stock closed up 6.4% at $19.57, while Xerox’s shares were up 3.6% to $37.66. Xerox’s market cap stood at $8.3 billion on Wednesday.
In 2018, Xerox had scrapped a $6.1 billion merger with Fujifilm following pressure from investors Carl Icahn and Darwin Deason. The duo launched an activist campaign at Xerox and managed to overthrow the board.