In the face of the coronavirus pandemic and its resulting economic uncertainty, Xerox announced they are withdrawing their tender offer to acquire HP. Moreover, Xerox will no longer be nominating new members to the HP Board of Directors, which was a crucial part of the company’s hostile takeover attempt.
The Business Solutions Industry is inherently enmeshed with many other businesses. Industry technicians and sales reps visit offices and interact face-to-face with everyone from the reception desk to the copy room to the management or executive offices. As a result, the health and safety of other businesses will have a direct impact on your business – and vice versa.
On March 2nd, Xerox launched a formal tender offer to acquire HP for $24 per share. “Our proposal offers progress over entrenchment,” said John Visentin, CEO of Xerox. “HP shareholders will receive $27 billion in immediate, upfront cash while retaining significant, long-term upside through equity ownership in a combined company with greater free cash flow to invest in growth and return to shareholders.”
In mid-January, Xerox announced its intention to nominate “11 independent candidates” to HP’s Board of Directors. Xerox CEO, John Visentin, stated, “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.”
As we ring in the new year, it seems a good time to reflect on the big industry changes we saw in 2019: