Xerox finally launches formal offer for HP Inc valuing PC maker at $36.5bn

After months of trying to cajole the HP board into agreeing a deal, Xerox's CEO formally tables acquisition offer

Xerox has finally launched its formal offer for HP Inc, valuing the PC and printer maker at $36.5 billion.

The proposal, claimed Xerox CEO John Visentin, represented "progress over entrenchment" for HP shareholders.

He added: "HP shareholders will receive $27 billion in immediate, upfront cash while retaining significant, long-term upside through equity ownership in a combined company with greater free cash flow to invest in growth and return to shareholders."

The balance of the offer is comprised of stock in the merged company.

The tender offer will run until 21^st April 2020. The full terms and conditions have been filed with the Securities and Exchange Commission (SEC).

The offer comes just two weeks after the board of HP adopted a shareholder rights ‘poison pill' intended to prevent a Xerox takeover. That shareholder rights plan came out just a week after Xerox had said that it planned to launch a formal offer for the company.

The shareholder rights plan will not prevent HP's merger with Xerox or any other business, according to HP, but should encourage the party to negotiate with the HP Board "prior to attempting to impose some combination that is not in the best interests of the HP shareholders".