The Hewlett-Packard Company (HP) had rejected an offer from printer maker Xerox to buy the company, saying the $33.5bn cash-and-stock proposal significantly undervalues the personal computer maker.

Tech giant HP said it had rejected a $33.5bn takeover offer by printer manufacturer Xerox, sources said.

According to the details, the board has unanimously concluded that it [offer] significantly undervalues HP and is not in the best interests of HP shareholders.

“In reaching this determination, the Board also considered the highly conditional and uncertain nature of the proposal, including the potential impact of outsized debt levels on the combined company’s stock”, HP said.

Xerox made the $33.5 billion cash-and-stock offer earlier in November, HP said on Sunday, according to a letter dated November 5.

HP had confirmed Xerox’s bid earlier but only publicly disclosed the offer price on Sunday.

Xerox had offered HP shareholders $22 per share that included $17 in cash and 0.137 Xerox shares for each HP share.

The offer would have given HP shareholders control of roughly 48 per cent of the company.