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HP and Xerox blame each other as takeover bid rattles on

(Image credit: Image source: Ken Wolter / Shutterstock)

Xerox has officially launched a tender offer to acquire HP.

The printing company is offering $24 per share, made up of $18.40 in cash and 0.149 Xerox shares for each HP share.

With the total amounting to $27 billion, this would mean that Xerox has essentially upped its offer and is somewhat more aligned to HP's expectations.

"Our proposal offers progress over entrenchment," said Xerox CEO John Visentin. "HP shareholders will receive $27 billion in immediate, upfront cash while retaining significant, long-term upside through equity ownership in a combined company with greater free cash flow to invest in growth and return to shareholders."

According to Reuters, HP accused Xerox of not providing enough information that would allow HP to make an offer for Xerox. At the same time, the latter said HP doesn't want to merge and that it's offer is the best way forward to deliver a premium for HP shareholders.

Late last year, Xerox offered $22 per share to buy HP, $17 being in cash and 0.137 Xerox share per HP share. The offer was unanimously rejected, with HP's board of directors claiming the offer undervalued the company. After a bit of back and forth, Xerox eventually upped its bid, but also said it would take the offer directly to the company's shareholders if the board keeps declining the offers.

HP, on the other hand, doesn't seem to be too bothered with the whole ordeal. It reently announced a new three-year plan to grow its earnings, and added that it was in communication with Xerox "to explore if there is a combination that creates value for HP shareholders that is additive to HP's strategic and financial plan."

HP is roughly three times the size of Xerox.