Tech giant HP today said it had rejected a $33.5bn (£26bn) takeover offer by printer manufacturer Xerox.
Read more: HP plans to cut up to 9,000 jobs
HP said the bid “significantly undervalues” the company, but added that it remained open to a potential merger and hoped for further engagement with Xerox management.
“[The board] has unanimously concluded that it [offer] significantly undervalues HP and is not in the best interests of HP shareholders,” the California-based firm said in a statement.
“In reaching this determination, the board also considered the highly conditional and uncertain nature of the proposal, including the potential impact of outsized debt levels on the combined company’s stock.”
HP added that it had taken Xerox’s annual revenue decline into consideration when making the decision.
Xerox made the combined cash and share offer earlier in November, HP confirmed. The bid had previously been announced, but the value of the deal was only revealed today.
Xerox had offered HP shareholders $22 per share, made up of $17 in cash and 0.137 Xerox shares for each HP share, according to a letter dated 5 November.
The offer would have given HP shareholders control of roughly 48 per cent of the company.
Activist investor Carl Icahn, who has recently taken a stake in HP, was pushing for its merger with Xerox, the Wall Street Journal reported last week.
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