According to news reports, HP Inc. has rejected a roughly $33.5 billion takeover offer from Xerox. The Palo Alto company confirms that the cash and stock deal undervalues its business and its board cited concerns about “outsized” debt levels should the companies combine. HP, which makes computers and printers, has said it recognizes the potential benefits of consolidation and remains open to exploring other options to combine with Xerox Holdings Corp.
Both companies face difficulties as the demand for printed documents and ink has waned. Earlier this month, Xerox offered to give HP shareholders $17 in cash and a fractional share of Xerox stock for each share they held in HP with the total value of the deal at $33.5 billion. If the deal had been completed, HP shareholders would own approximately 48% of the combined company.