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HP confirms Xerox has sent them a proposal for acquisition

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Xerox proposes to acquire HP

HP was one of the best companies in the recent past when it came to PCs, Laptops, Printers and more. However, the company seems to have gone downhill with the competition from Dell, Asus and others growing in the market. However, things have come to the point where HP is about to get acquired by another company. The company has now confirmed to TechCrunch that they have received a proposal from Xerox for the same. HP says that they are having discussions about getting acquired by Xerox and they add that whatever is in the best interest of shareholders will be done.

HP, which is now termed as a printer company, while the PC making division of HP has been separated was reportedly looked on by Xerox for an acquisition. As per a report from the Wall Street Journal, Xerox has proposed more than $27 billion for the printer company. Now, it is up to HP if it wants to get acquired by Xerox or not but they do need to take a long look at the offer since the money offered is big.

HP, in its official statement, did say that an offer letter has been received by them from Xerox. However, they did not mention anything about the proposed offering to HP in return for the acquisition which we believe will only be known if the offer gets accepted or rejected. Some believe that Xerox’s proposal of HP takeover is strange since HP is much bigger compared to Xerox.

For reference, Xerox has a market cap of just $8 billion compared to HP’s $29 billion. Now, the only thing we can think of is that Xerox is looking to rapidly grow in the market and they can easily take the help of HP’s established userbase in the printer business. Now, it seems like both HP and Xerox investors are happy with the news since both the stocks rose by 6.36% and 3.55% respectively.

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