Xerox: Affected by the epidemic, it will abandon the $35 billion hostile takeover of HP

According to foreign media reports, Xerox announced that due to the impact of the new coronavirus epidemic, the company decided to abandon its $35 billion hostile takeover of HP.

Xerox said in a statement: "The current global health crisis and the macroeconomic and market turmoil caused by the new coronavirus have created an environment that is not conducive for Xerox to continue pursuing its acquisition of HP. While it is disappointing to abandon the acquisition, we are prioritizing the health, safety and well-being of our employees, customers, partners and other stakeholders, as well as our broader response to the epidemic."

It is understood that HP has responded earlier to Xerox's cash and stock acquisition offer, saying: "We remain firmly committed to creating value for HP shareholders. We have a healthy cash position and balance sheet that enables us to navigate unexpected challenges such as the global epidemic now before us, while retaining strategic options for the future.

Xerox’s board concluded it was too risky to pursue an acquisition without access to HP’s books and assess the impact of the coronavirus outbreak on HP’s business, according to people familiar with the matter. Xerox had planned to challenge HP’s board at HP’s annual shareholder meeting in May but will now abandon that effort and its offer for HP shares, the people added.

After the news of Xerox's abandonment of the acquisition, HP's stock price fell more than 1% to close at $15.65 per share, while Xerox's stock price rose more than 5% to close at $18.94 per share.