Printer and computer maker HP Inc. issued a letter to its shareholders on Wednesday pushing back on a proposed takeover offer from rival Xerox.
HP urged shareholders not to proceed with any transaction due in part to the current uncertainty caused by the COVID-19 epidemic. It also reiterated prior concerns with the proposal, again arguing that the combined company would be saddled with too much debt.
Xerox said it would take its merger pitch directly to shareholders after HP rejected an initial $33.5 billion takeover offer in November. Since then, Xerox has made a number of moves to bolster its proposal, including raising the offer price and nominating its own slate of directors for HP’s board.
Xerox released a statement two weeks ago saying that it would postpone additional presentations and meetings with HP stockholders to focus on its COVID-19 response, but HP’s letter asserts that Xerox has continued to advance its tender offer and proposed director slate.
HP is headquartered in California but operates a facility in Vancouver. It is one of Clark County’s largest employers.