A hot potato: Xerox is done playing nice. HP Inc. has twice rejected the company’s acquisition offers in recent months so now, Xerox is taking a hostile approach by nominating 11 new directors to replace HP’s entire Board of Directors at its upcoming annual shareholder meeting.
John Visentin, vice chairman and chief executive officer of Xerox, said HP shareholders have told them that they believe their acquisition proposal will bring tremendous value. It is why Xerox has lined up $24 billion in binding financing commitments and a slate of “highly qualified” director candidates.
“We believe HP shareholders will be better served by a new slate of independent directors who understand the challenges of operating a global enterprise and appreciate the value that can be created by realizing the synergies of a combination with Xerox,” Visentin said.
HP in a statement said Xerox’s director nominations are a self-serving tactic to advance its proposal, one that significantly undervalues HP and creates meaningful risk to the detriment of HP shareholders.
Xerox’s list of candidates includes former senior executives from some of the world’s leading companies including Hilton Hotels, Verizon, Aetna and United Airlines, just to name a few. Xerox said they were chosen due to their expertise in overseeing company transformations and combinations.
Worth noting is the fact that HP Inc. is much larger than Xerox. As of writing, Xerox has a market cap of just $7.67 billion compared to HP’s $31.91 billion valuation.