Why HP Stock Popped Today
Shares of HP (NYSE: HPQ) have popped today, up by 14% as of 3:30 p.m. EDT, after the company released an open letter to shareholders yesterday after the market closed. The broader indexes are also jumping on continued hopes that the U.S. government will pass a historic stimulus bill to mitigate the economic fallout of the COVID-19 outbreak.
After first asking nicely, Xerox (NYSE: XRX) formally launched a hostile takeover of HP earlier this year by commencing a tender offer. HP's board had spurned multiple offers from Xerox. In a tender offer, an acquirer appeals directly to an acquisition target's shareholders as opposed to negotiating with the board of directors. In this case, Xerox is offering to acquire all outstanding HP shares for $24 per share -- the same price that HP's board turned down.
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Source Fool.com
