Xerox and HP possible merger update
- Xerox has begun taking its case to acquire HP directly to the company’s shareholders, arguing in a presentation that HP stockholders’ share of the combined company could be worth more than 50% more than its current value.
- Claims that new company would create $1 billion to $1.5 billion in new revenue growth by means such as integrating HP products into Xerox’s service offerings and cross-selling each company’s products
- Xerox increased its offer price from $22 per share to $31
- to achieve $2 billion in cost savings, Xerox says it would implement workforce optimization, shared service centers, vendor consolidation, streamlining of common functions, and consolidation of facilities
- also says HP could benefit from Xerox’s direct sales force, as HP’s current channel is primarily through dealers