Re: An Offer You Can't Refuse
Icahn is saying that this valuation of HP is likely as good as it gets.
It values HP at near it's peak price in 2019 and at a ~30% premium compared to when the offer was made.
Looking at how well competitors are doing in the printing market, the declining PC market and the challenges HP have with selling ink and other consumables, even if he is wrong, I suspect it may only be by a few percentage points assuming HP can rediscover their mojo.
Given the HP's track record for senior management, I find it hard to believe that Xerox can do worse. A Xerox/HP combination could potentially provide some competition to Canon before they become unstoppable.
But then I suspect recruiting at a graduation ceremony at a clown college would also improve HP's chances of improving senior management, so my advice isn't such a "no brainer"...its more likely a floater that needs two or three flushes before it goes away.
Biting the hand that feeds IT
