Xerox has confirmed it will withdraw its tender offer to acquire HP and will no longer seek to nominate any candidates to HP’s board of directors.
In a statement, the company claims the current global health crisis and resulting macroeconomic and market turmoil caused by Covid-19 have created an environment not conducive to Xerox continuing to pursue an acquisition of HP. Its statement says: “While it is disappointing to take this step, we are prioritising the health, safety and well-being of our employees, customers, partners and other stakeholders, and our broader response to the pandemic, over and above all other considerations.”
This move comes only days after HP issued a letter to its shareholders, penned by HP chief executive Enrique Lores and HP board of directors chair Chip Bergh. They also point out the importance of focusing on dealing with the effects that Covid-19 has caused. The HP letter says: “We are committed to doing everything we can to support those in need and respond to the challenges at hand. This pandemic is still unfolding, and it will impact people, the economy and business activities for months, if not longer.
“Our primary responsibility in this difficult period is to focus on HP’s business and address the needs of our ecosystem of stakeholders around the world, including our shareholders, our millions of customers, our 250,000 partners, and our team of approximately 55,000 employees.
“We are actively managing many challenges, including assuring the health and safety of our people, addressing supply chain disruptions, monitoring and addressing our customers’ liquidity needs and, more broadly, ensuring HP is well positioned to support people working remotely.”
