Xerox has begun an unsolicited exchange offer to acquire all outstanding shares of HP common stock consisting of cash, Xerox common stock, or a combination of both. The OEM last week officially launched a $35 billion offer directly to HP shareholders – the latest move in this exhausting, 9-month fight for control of HP. However, Canon CEO and Chairman Fujio Mitarai made it crystal clear last week that a takeover of HP by Xerox would create a company that would rival Canon’s own business. Therefore, he said that Canon will “cut its ties with HP if the hostile takeover bid launched by Xerox is successful.” HP currently buys laser-printer components from Canon, and is one of the Japanese OEM’s largest customers, generating almost 14% of its sales annually.
“The relationship, which involves the sharing of technology and intellectual properties, is based on trust between the companies’ top management,” Mitarai insisted. “Such a relationship is not something that can be built overnight. Canon intends to partner with and strive to advance the collective interests of organizations that have a strong track record of operating with integrity, while clearly share our values.” If Xerox eventually succeeds in its hostile takeover bid, Canon will end a 35-year relationship with HP.
Editor’s Note: As of March 31, Xerox said it would hold off on its takeover bid during the COVID-19 pandemic.
We apologize for originally misspelling Mr. Mitarai’s name. The updated edit was made on Monday April, 20th, 2020.