aren't they doomed anyway ?
Given the shrinking IT business, the question is when, not if they close down
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 …
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.
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.
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!!!
'"...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.
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