Xerox’s HP bid walks, quacks like Carl Icahn

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Xerox’s HP bid walks, quacks like Carl Icahn
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Xerox may be copying Carl Icahn's playbook if it proposes to oust most of the directors on HP's board. But that doesn't help Xerox's case in pushing its $33 billion takeover, writes johnsfoley.

Xerox is preparing to nominate as many as 11 directors to rival HP’s board after buying a small stake in the company, the Wall Street Journal reported on Jan. 21. Xerox had made an offer to buy HP for $33 billion in cash and shares, which the printer maker rejected in November.

Xerox said on Jan. 6 it had secured $24 billion in financing for the potential takeover, provided by Citigroup, Mizuho Bank and Bank of America. Activist investor Carl Icahn, who has a 4.2% stake in HP and a 10.9% stake in Xerox, in December urged HP shareholders who support a merger with Xerox to push the PC maker's directors to engage in discussions on a deal.

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