Xerox has collected $24 billion to pay for its unsolicited bid to take over printer rival HP.
In a letter to HP’s CEO Enrique Lores, Xerox boss John Visentin confirmed that the vendor has obtained financing to push through a takeover, suggesting that the loan should allay any doubts HP shareholders have over Xerox’s ability to afford the transaction.
“We have always maintained that our proposal is not subject to a financing contingency, but in order to remove any doubt, we have obtained binding financing commitments (that are not subject to any due diligence condition) from Citi, Mizuho and Bank of America.”
Xerox’s first offer was made public at the start of November, with the print vendor offering $27 billion.
HP’s board swiftly rejected the overtures of its smaller competitor.
Xerox’s market cap is less than a quarter of HP’s – standing at around $7.88 billion compared with HP’s $29.83 billion.
Xerox’s board expressed its determination to “expeditiously pursue our proposed acquisition of HP to completion” with “no cause for further delay”.
