Why HP Stock Plunged Today
Shares of HP (NYSE: HPQ) have plunged today, closing down 14%, after smaller rival Xerox (NYSE: XRX) abandoned its hostile takeover attempt. Yesterday evening, Xerox said it was formally withdrawing its tender offer to acquire all of HP's outstanding shares.
Ever since late 2019, Xerox has been trying to acquire HP. Initially, talks were cordial as Xerox negotiated with HP's board, but after multiple spurned offers, the company launched a hostile takeover in the form of a tender offer appealing directly to shareholders. Xerox's offer of $24 per share was the same price that HP's board had rejected. Last week, HP issued a letter to shareholders urging them to decline the offer, arguing that the combined company would have an unsustainable debt load and that the price undervalued HP's long-term prospects.
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Source Fool.com
