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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 (opens in new tab).

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 (opens in new tab), HP accused Xerox of not providing enough information that would allow HP to make an offer for Xerox (opens in new tab). 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.

Sead Fadilpašić is a freelance tech writer and journalist with more than 17 years experience writing technology-focussed news, blogs, whitepapers, reviews, and ebooks. And his work has featured in online media outlets from all over the world, including Al Jazeera Balkans (where he was a Multimedia Journalist), Crypto News, TechRadar Pro, and IT Pro Portal, where he has written news and features for over five years. Sead's experience also includes writing for inbound marketing, where he creates technology-based content for clients from London to Singapore. Sead is a HubSpot-certified content creator.