Xerox became synonymous with photocopying and printing. HP’s business is built, in large part, around its printers. Now Xerox wants to combine the two companies.
On Wednesday night, HP announced that on Tuesday, it had received a takeover offer from the printing company Xerox, after conversations “from time to time about a potential business combination.”
“We have a record of taking action if there is a better path forward and will continue to act with deliberation, discipline and an eye toward what is in the best interest of all our shareholders,” the statement said.
A merger would combine two once formidable companies that have faced business difficulties in recent years as demand for printed documents and ink has waned. Xerox did not respond to a request for comment.
The Wall Street Journal had previously reported that Xerox was considering a cash-and-stock offer for HP, which is also one of the world’s largest makers of personal computers. HP has a market value of $27 billion, more than three times that of Xerox. CNBC reported on Thursday that Xerox had offered HP $22 a share in the takeover bid.
HP’s chief executive, Dion Weisler, stepped down in August, citing a “family health matter.” He was replaced by Enrique Lores, a longtime executive who started at the company as an engineering intern.
Both HP and Xerox have announced cost-cutting measures in recent months. This year, Xerox said it planned to cut costs by more than $640 million. And HP said in October that it would cut as much as 16 percent of its work force as part of a broader restructuring plan.