The maker of expensive printer ink called HP has admitted that Xerox has been on the phone about a potential buyout.
The dark satanic rumour mill manufactured a hell on earth yarn claiming that Xerox was considering a takeover bid and HP was saying nothing.
HP has now broken its silence with a statement that confirms that the rumours were true although the relationship was still has been in contact with Xerox “from time to time”.
The vendor said: “As reviewed at HP’s most recent Securities Analyst Meeting, we have great confidence in our multi-year strategy and our ability to position the company for continued success in an evolving industry, particularly given the multiple levers available to drive value creation.
“Against this backdrop, we have had conversations with Xerox from time to time about a potential business combination. We have considered, among other things, what would be required to merit a transaction. Most recently, we received a proposal transmitted yesterday. “We have a record of taking action if there is a better path forward and will continue to act with deliberation, discipline and an eye towards what is in the best interest of all our shareholders.”
The rumours say that Xerox is considering a cash-plus-stock offer, with funding from a major bank informally in place. HP’s market value is more than three times that of Xerox, at around $27 billion.
