Xerox has approached HP for acquisition
The American copier and printer manufacturer Xerox is considering a billion-dollar bid for computer and printer manufacturer HP. This is reported by business newspaper The Wall Street Journal based on insiders. A deal would merge two of the biggest names in the field of office equipment.
Xerox would like to pay $ 27 billion for HP in shares and cash. It is still unclear how exactly the company wants to finance a takeover of the much larger HP. According to the newspaper, an informal deal has already been made with a large bank for part of the amount, and Xerox has been in cash for several billions since selling its stake in Fuji Xerox.
The Xerox board reportedly met last Tuesday to discuss the move. Both companies were not immediately available for comment.
The international market for printing and copying equipment has been under pressure for some time due to the movement of companies to the cloud and other internet services. HP has been struggling for years in the personal computer market, recently appointed a new top executive and is cutting its staff to cut costs. The print division of the company, currently an important source of profit, is also seeing revenue decline.