HP has told its shareholders that it is ill-advised to pursue M&A activity during the ongoing coronavirus pandemic - including the hostile takeover bid from Xerox.
According to a ZDNet report, the company issued a scathing letter to its shareholders, criticising Xerox's continued pursuit of a deal.
"It is important for shareholders to understand that, under these circumstances and consistent with our fiduciary duties, we believe that we should not divert valuable time, attention and resources to a dialogue with Xerox about its proposed transaction," said the letter.
"Any complex, large-scale, highly leveraged transaction in the current economic environment could be disastrous for HP, its shareholders and our entire ecosystem. While we remain open-minded about M&A as a tool to add value for HP shareholders at the right time and on the right terms – it's abundantly clear that now is not that time."
Earlier this month, Xerox said it would temporarily halt its campaign to acquire HP, but would continue with its tender offer and proposed board slate.
As it stands, HP's board of directors approve of the decision to turn down Xerox.