FILE PHOTO: The company logo for Xerox is displayed on a screen on the floor of the New York Stock Exchange (NYSE) in New York, U.S., March 11, 2019. REUTERS/Brendan McDermid
(Reuters) – Xerox Holdings Corp (XRX.N) is preparing to nominate as many as 11 directors to HP Inc’s (HPQ.N) board, the Wall Street Journal reported on Tuesday, as the company seeks to push its $33.5 billion takeover offer for the personal computer maker.
The U.S.-based printer maker bought a small stake in HP in recent weeks, the newspaper reported, citing sources.
The stake would give Xerox the right to nominate directors for elections to be held at the HP’s annual meeting this summer, the report said, adding that the deadline to nominate directors is Friday, and Xerox could still decide to not follow through with the nominations.
In November last year, Xerox made the $33.5 billion cash-and-stock offer to HP, a company more than three times its size. HP had rejected Xerox’s offer, saying it significantly undervalued the company.
Activist investor Carl Icahn, who has a 4.2% stake in HP and a 10.9% stake in Xerox, in December urged HP shareholders who agreed with a merger to reach out to the PC maker’s directors for immediate action.
Earlier this month, Xerox said it secured $24 billion in financing for the proposal. HP, however, rebuffed the talks again and said securing financing is not a basis for a discussion and reiterated that the proposal still undervalues the company.
Both companies did not immediately respond to Reuters’ requests for comment after regular business hours.
Reporting by Shubham Kalia in Bengaluru; Editing by Subhranshu Sahu and Sherry Jacob-Phillips