Xerox raises bid for HP to $36 billion

Xerox said Monday it was raising its offer for computer and printer maker HP to some $36 billion as part of an effort to win over shareholders amid a heightened battle for control of the Silicon Valley firm.

The new offer from the imaging and copying giant Xerox is around 10 percent higher than the bid launched last year and rejected by the HP board of directors.

Xerox said in a statement it already has support from some large HP shareholders who “want the enhanced returns, improved growth prospects and best-in-class human capital that will result from a combination of Xerox and HP.”

Earlier, The Hewlett-Packard Company (HP) had rejected an offer from Xerox to buy the company.

HP said that $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 the printer manufacturer, 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.

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

The company 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.