Xerox (NYSE: XRX)has boosted its offer to acquire HP Inc. (NYSE:HP) to $24 a share, or about $34 billion, the company announced Monday.
The new offer would be for $18.40 per share in cash and 0.149 Xerox shares per share of HP.
Last November, Xerox offered HP $22 per share in its takeover bid for the company. HP’s board of directors unanimously rejected the proposal, saying the offer undervalued HP and wasn’t in the best interest of shareholders.
Xerox said it has met with HP’s shareholders several times to discuss the potential "synergies" that could come from a deal. Xerox said the sweetened bid would enable HP’s shareholders to "accept Xerox’s compelling offer despite HP’s consistent refusal to pursue the opportunity."
The release went on to say "The value created by the synergies realized in a combination of Xerox and HP is incremental to any value that HP can create by revising its strategic plan or dramatically changing its capital allocation policy to incorporate additional share repurchases.
“Xerox’s offer provides HP stockholders with both significant, immediate cash value, and meaningful upside via equity ownership in the combined company.”
HP representatives were not immediately available for comment.
Xerox shares began Monday down eight cents to $37.09, while shares in HP gaining 75 cents, or 3.5%, to $22.48.
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