Xerox Holdings Corporation has paused all activities in relation to its proposal to acquire HP as the company announces its intention to use the time and resources to protect its stakeholders from the coronavirus pandemic.
In a statement, the company’s vice-chairman and CEO John Visentin said a halt will be in place while efforts are directed towards the coronavirus pandemic.
“In light of the escalating COVID-19 pandemic, Xerox needs to prioritise the health and safety of its employees, customers, partners and affiliates over and above all other considerations, including its proposal to acquire HP,” he said.
“As we closely monitor reports from government and healthcare leaders across the globe and work with colleagues in the business community to minimise the spread and impact of the virus, we believe it is prudent to postpone releases of additional presentations, interviews with media and meetings with HP shareholders so we can focus our time and resources on protecting Xerox’s various stakeholders from the pandemic.”
The company also clarified that the move is not a result of the market decline since the date of its offer or the temporary suspension of trading in HP shares that occurred on March 10 and March 12 respectively.
“Xerox will take the same view on any future temporary trading halts, unless otherwise stated in advance,” the company said.
Most recently, Xerox filed for a preliminary proxy statement with the United States Securities and Exchange Commission to seek approvals from its shareholders related to the issuance of Xerox shares in relation to its offer to acquire HP Inc.
Xerox’s tender offer includes the acquisition of all outstanding shares of HP for US$24.00 per share, comprising of US$18.40 in cash and 0.149 Xerox shares for each HP share.
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