I'm pretty sure this is all a ploy to make it seem Xerox is doing better than it is. By the end of the day, we can't afford HP. So stop panicking and/or getting angry about something that is not happening. Lord knows there are plenty of real things to get worked up over at this place.
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Isn't there a 12month moratorium on Fuji bidding a second time for Xerox. Is this potential HP deal a way of spicing up the value if Fuji attempts a second buyout?
See comment in thread regarding John V being fired, @11ULdGDR-1zpw
Spot on!!
@ 1ahi and 1meb are on the right track. It doesn’t matter who is purchasing who in this transaction. Overall debt will be the same after companies combine.
Lots of reasons why Xerox made the move in this transaction:
- HP has a new CEO; John V in good position to lead combined company.
- HP has new CEO who is not ready to take this on in the next 6 months or year and C Icahn not willing to wait
- HP submission for challenges to board occur in next 8 weeks; C Icahn will pull same maneuvers on HP as he did on Xerox if HP doesn’t concede to what he wants. TBD on if he would have success.
@ 1ahi Agree. It doesn’t matter from a financial standpoint who’s the buyer and who’s acquiring as long as a financial institute is backing the deal as Citibank has agreed to do. Citibank acknowledges the “value” in the combined companies.
There’s only 8-10 financial institutions in the world who could back this deal and Xerox found one of them. HP can choose to gracefully agree or fight it as Xerox did and loose.
You don’t need the cash to “afford” it. The quest is what value will the combined entity have.
I disagree. Icahn wants out of this sh–ty business (as he once told Jacobson). As soon as the FX deal was done to open the door to sell, he wants to sell to HP. Since HP is a wreck at the moment (new CEO, 10K layoffs, etc) and the brand new CEO just took the wheel and a deal is nowhere on his RADAR, Icahn will make it the merger happen. HPQ proxy statement goes out in December. Don't be surprised if Icahn tries to get board members on the ballot.
And yet our CEO literally just went back on what he said yesterday and now says we are making the offer.
Perhaps now analysts will pay some attention to what is really going on at XRX and expose the failure of the HP washouts now at the XRX helm. Wishful thinking, when egos trump substance in 2019.
Fully agree yet the mainstream media and generic analysts fail to see that.