Xerox Holdings Corp is considering a cash-stock offer for the US$27 billion PC giant HP Inc, the Wall Street Journal (WSJ) reported, a deal that could combine two of the biggest United States names in office hardware.
Xerox Holdings Corp.is considering a bid to acquire HP Inc.in a deal that would combine two struggling technology veterans. The U.S. printer maker's board discussed the possibility on Tuesday, the newspaper said, citing people familiar with the matter.More news: Au revoir to daylight saving time, but not a goodbye
According to the Wall Street Journal, the company is launching an audacious offer for its fellow printing giant as it looks to stake its claim to still be a technology powerhouse.
There is no guarantee that Xerox will follow through with an offer or that one would succeed, it added. Both companies have been fighting to come up with solutions to a decline of demand for printed documents.More news: Elizabeth Warren's Medicare-for-all proposal would cost Jeff Bezos $7 billion
He said full ownership of the firm would "facilitate faster decision making in a rapidly changing business environment". "It could make sense buying HP's printer business, but it doesn't make any sense for the PC business", said Patrick Moorhead, president and principal analyst at Moor Insights & Strategy. It also reported an upside third quarter and raised its 2019 outlook. The deal will bring to a close a two-year saga involving a complex merger plan, a chief executive's ouster, several lawsuits and activist investors Carl Icahn and Darwin Deason. The deal to buy Xerox's stake also includes 51 percent ownership in Xerox International Partners, an original equipment supplier in the United States and Europe, the companies said.More news: Novak Djokovic beats Denis Shapovalov to win fifth Paris Masters title