admin San Francisco – Xerox Corp is planning to consider offer for the $27 billion by PC giant HP Inc. This deal could merge two of the biggest American names in office hardware.
On Tuesday Xerox’s board met to consider a deal that could result in $2 billion of annual cost savings, the newspaper cited unidentified people as saying. However any offer would value HP at a premium to its market value has no guarantee the company will follow through. After regular business hours, the company’s representatives weren’t immediately available for comment.
Earlier to this on Monday Xerox agreed to jettison a slice of a venture with Japan’s Fujifilm Holdings for $2.3 billion, may be angling to take over the world’s largest maker of personal computers after China’s Lenovo Group. Any deal would bolster its share of the printing and copying market, which has been hard-hit by the global move toward cloud computing and other internet services. It is not clear whether Xerox which is a name synonymous with the copying industry plans to finance the acquirement of a company several times its market value. And from a major bank it has already secured an informal funding commitment, on top of proceeds from the sale of its stake in Fuji Xerox. HP itself is struggling in a plateauing PC market with the advent of smartphones and it has appointed a new CEO last month, aims to slash as much as 16% of its workforce as part of a restructuring meant to cut costs and boost sales growth amid its first change in top leadership in four years. HP’s printing business, a major source of profit, has seen falling sales and recently was dubbed a “melting ice cube” by analysts at Sanford Bernstein.
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