HP Inc. has again rejected a $33.5 billion merger proposal from fellow printer manufacturer Xerox. HP initially rejected the takeover offer in November, and it reiterated that position in a Wednesday letter from the company’s board of directors to Xerox CEO John Visentin.
The response comes two days after Xerox announced that it had secured $24 billion in financing for the takeover. In a letter to HP’s board on Monday, Visentin stated that he had been engaged in “constructive dialog” with HP shareholders, and that the new financing announcement was intended to address concerns from HP executives about Xerox’s ability to fund the merger.
In their response on Wednesday, HP’s board said that the financing wasn’t the point.
“Your letter dated January 6, 2020, regarding financing does not address the key issue — that Xerox’s proposal significantly undervalues HP — and is not a basis for discussion,” the board wrote.
