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Felicia Tan
in
Finance
November 12 17:39

HP and Xerox megamerger is under scrutiny

The companies are reported to disagree over the leadership role in the new corporate entity 
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Several days after the takeover bid from Xerox arrived, HP has allegedly put the negotiations on ice after they discovered the unclear issues of post-merger structure. Both parties agreed, that these worries are not unjustified, but currently cannot agree about the management positions. To facilitate the search for a compromise, Xerox is ready to offer HP a period of mutual due diligence for up to four weeks. This way both sides can assess the benefits of the merger and test the possible work structures.
Companies agree, that the merger would be hugely beneficial for them – combining their resources might help them to overcome the problems of the declining printing market. However, currently their relationship is still tense. In fact, some experts believe, that Xerox – the initiator of the deal – might be pressuring HP into buying them over instead. HP’s market cap is about $29 billion, Xerox’s is $8.4 billion.