Categories
Law & Order

Xerox Lines Up Citi Financing for Potential HP Bid

Xerox Holdings Corporation has taken the decision of lining up Citigroup financing as it considers possible offer for HP, as per a person familiar with the matter.

Xerox is thinking of making one cash-&-stock bid for HP, said the informer who asked his identity to remain concealed. John Visentin, the CEO of Xerox would operate the merged firm under the deal being discussed, said the person.

Xerox sees space for around $2bn of yearly cost savings by merging the two firms, said the person. A final decision is yet to be made and it isn’t sure if the deliberations would really result into an offer, as per the person.

After Wall Street Journal informed about Xerox considering an offer for HP, the stock price of the Palo-Alto-based firm rose to 18 percent on Wednesday. The stocks were high by 12 percent to $20.67 on Wednesday morning in NY trading, giving around $30.6bn of market value. Meanwhile, Xerox, based in Connecticut, rose by 2.8 percent to $37.40, giving around $8.3bn market value.

Acquiring HP will strengthen Xerox’s stock of copying and printing market that has been suffering with a global downturn to cloud computing.

Xerox is yet to comment on the matter.

By Daniel Vincent

With a bachelor's degree in Journalism, Daniel Vincent is the editor at Bulletin Line. He has fluency in reporting Law & Order news pieces from around the world. Additionally, with his expertise in the language, he edits all the news pieces contributed to the platform.