Could Rising PC Sales Force Xerox to Raise Its Bid for HP?
Global shipments of PCs grew 2.7% in 2019, according to IDC, marking the industry's first full year of growth since 2011. Microsoft's decision to end support for Windows 7 this January sparked enterprise upgrades to Windows 10 PCs, CPU shortage concerns eased as AMD picked up Intel's slack, and new convertible and gaming PCs gained momentum.
That growth sounds promising for top American PC maker HP (NYSE: HPQ). However, investors should recall that HP has been trying to fend off a hostile bid by Xerox (NYSE: XRX) since last November. Could rising PC sales force Xerox to raise its bid?
Xerox approached HP with an unsolicited takeover bid at $22 per share in late November. The proposed $33 billion offer would give HP investors $17 in cash and 0.137 shares of Xerox per HP share.