U.S. printer manufacturer Xerox Holdings is hosting a dinner for HP shareholders this week as it seeks investors backing to beat the personal computer manufacturer’s stand to its $35 billion takeover offer, based on people conversant in the matter.
The charm offensive comes after Xerox raised its cash-and-stock offer for HP last week by $2 to $24 a share ahead of a tender offer it plans to roll-out in early March. It is also asking HP shareholders to switch HP’s board directors with Xerox’s nominees at the firm’s annual shareholder assembly later this year.
HP, whose shares settled Friday at $22.37, is anticipated to dismiss the sweetened offer as insufficient when it reveals its most up-to-date quarterly earnings on February 24. It told traders last week it wants them to have “full data” on the corporate before responding publicly to Xerox.
Xerox has invited some HP shareholders to dinner at a restaurant in the Riverside vicinity of Greenwich, Connecticut, on February 18, the sources stated.
Enough HP shareholders supporting HP chief executive Enrique Lores could embolden the corporate to remain impartial or hold out for a better offer.
Other such meetings are likely in the coming days, stated another of the sources, who asked not to be recognized as the meeting is confidential.
Xerox has stated it expects the combination with HP, which has four times its market capitalization of about $8 billion, to gain roughly $2 billion in cost synergies.
The two corporations focus on complementary segments of the printing sector.