Image: HP Labs, Palo Alto, California. Source: HP
(Reuters) – Xerox Holdings Corp said on Friday it would continue to pursue HP Inc, even after the PC maker said it would implement a poison pill plan to shield itself against a takeover offer from the U.S. printer maker.
“Despite the HP board’s intention to deny shareholders the chance to choose for themselves, we will press ahead with our previously announced tender offer and electing our slate of highly qualified director candidates,” Xerox said.
It raised its offer earlier this month by $2 to $24 per share, following several rejections of its previous buyout offers by HP.
HP on Thursday said the implementation of the stockholder rights plan, which has a one-year expiration period, aims to stop investors from amassing more than 20% stake in the company.
Among other terms, if any group acquires 20%, all shareholders outside the group will be able to buy additional discounted shares, diluting the ownership of the group.
That leaves Xerox with one realistic alternative for its takeover plans. It will have to go ahead with its plans to replace HP’s board with its own nominees in a shareholder vote during the latter’s upcoming annual meeting.
Xerox said in January it plans to nominate 11 independent candidates to HP’s board.
HP did not immediately respond to Reuters’ request for comment.
Reporting by Ayanti Bera in Bengaluru; Editing by Shinjini Ganguli.