On Sunday the computer and printer manufacturers—HP reiterated its decline of Xerox’s $33 billion takeover offer, saying that the sum undervalues the company significantly.
A tie-up would be uniting the two firms with storied histories—Xerox was found back in the year 1906 and became a household name with its copying machine.
HP, which has got its history back to 1939, started making audio equipment but landed up as one of the early leaders of the Silicon Valley tech industry.
The board of directors of HP mentioned in a letter that they are reiterating that they decline the proposal of Xerox as it greatly undermines the value of HP.
There still exists the uncertainty about the ability of Xerox to increase the cash portion of the suggested consideration.
Xerox last week said that it was astonished by the first rejection done by HP of the cash-and-stock offer, which sets a value of $22 per share for the computing company.
The chairman Xerox and the chief executive—John Visentin said that the offer indicates a 29percent premium to HP’s recent average trading price.
Carl Icahn—an activist investor recently told The Wall Street Journal that the tie-up was “no brainer” that would surge the returns for the shareholders of both the firms.
In the absence of a deal, Xerox said that it would take its compelling case for creating superior value for their respective shareholders directly to the other shareholders.