back to article Talk about ill-gotten gains: Coronavirus KOs Xerox's $30bn months-long hostile takeover bid of HP Inc

Xerox said on Tuesday that it is ending its hostile bid to acquire printer-and-PC maker HP due to financial complications arising from the ongoing COVID-19 coronavirus pandemic. "The current global health crisis and resulting macroeconomic and market turmoil caused by COVID-19 have created an environment that is not conducive …

  1. Denarius Silver badge

    aren't they doomed anyway ?

    Given the shrinking IT business, the question is when, not if they close down

    1. Blackjack Silver badge

      Re: aren't they doomed anyway ?

      Xerox is way less valuable that HP. So that company is more likely to crash and burn than HP.

      While I am not a fan of the current HP, Xerox's plan would have used LBOs and basically killed HP.

      1. Scotthva5

        Re: aren't they doomed anyway ?

        Agreed, HP's board was correct that the planned takeover would have saddled the new firm with enormous amounts of unserviceable debt and could have possibly killed both. This was all Carl Icahn's baby from the get-go and as history has shown Icahn is not concerned with long-term viability, just short-term profit.

        1. Doctor Syntax Silver badge

          Re: aren't they doomed anyway ?

          "This was all Carl Icahn's baby from the get-go"

          Is it too much to hope that he'll lose money from it?

    2. aks Bronze badge

      Re: aren't they doomed anyway ?

      The more interesting question is who's got the money to buy Xerox now that it's cheap.

      China?

      1. Doctor Syntax Silver badge

        Re: aren't they doomed anyway ?

        It sounds just like the sort of thing for SoftBank to sink its money into.

  2. Dwarf Silver badge

    Good

    It was a stupid idea in the first place.

    1. EveryTime

      Re: Good

      Stupid idea?

      Not for Carl Icahn, which would have (as usual) made a huge amount of money.

      For everyone, yes, there would have been tears. But the important thing was that Carl and the executives would have made money.

      I do wonder if he hasn't figured out a way to have HP buy back his stock and still come out ahead -- that is the way a 'failure' to acquire has ended in the past, with Icahn still making money at the expense of the regular shareholders.

  3. Aristotles slow and dimwitted horse Silver badge

    Ugh...

    I like the way they slip in the pointless "highly qualified" into the phrase about their board candidates. It's almost as pointless as when restaurants put the word "pan" in front of "...fried anything" on the menu; because thanks for that... I was worried for a moment that it was going to have been fried on an old storage pallet!!!

    1. 2+2=5 Silver badge

      Re: Ugh...

      Likewise 'homemade <whatever>'.

      I'm always tempted to ask "Who's home was it made in and do they have a current hygiene certificate?"

    2. Anonymous Coward
      Anonymous Coward

      Re: Ugh...

      While I agree about Xerox and "highly qualified" (truly an oxymoron waiting to happen), "pan frying" is a specific frying technique.

    3. Roger Kynaston Bronze badge
      Coat

      Re: Ugh...

      If HP made disks they could fry them on old disk platters!

    4. katrinab Silver badge
      Paris Hilton

      Re: Ugh...

      If it isn't pan fried, that generally means it was fried in a big vat of boiling oil (deep fried).

    5. Blackjack Silver badge

      Re: Ugh...

      Pan is the spanish name for bread.

      Fried bread doesn't taste bad, more so if you try it with butter.

  4. IGotOut Silver badge
    Mushroom

    Corporate bullshit in full effect

    '"...said the health and welfare of employees, customers, partners, and other stakeholders takes precedence."

    Oh do one will you.

    This is all about share prices and fuck all about staff. If you did even slightly care about your staff, you would sack them at the slightest downturn in profits.

  5. Yet Another Anonymous coward Silver badge

    Serious question (sorry)

    Why does there need to be announcements of takeovers?

    HP is traded on the market, Xerox can buy all the HP shares it wants at the 'true' price - but for rules stopping it.

    The rules are in place to stop shady consortiums of buyers picking up a company without anyone knowing about it, but it's not clear who this rule benefits (except protecting large corporations)

    The only legitimate objection would be monopolies concerns, but the 15% rule applies even when there is no competition question

  6. eldakka Silver badge
    Coat

    Extreme measures by HP

    to avoid the takeover. Starting a pandemic is rather excessive.

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