Xerox released a statement yesterday that begins with the following paragraph:
“The current global health crisis and the associated macroeconomic and market turmoil caused by COVID-19 have created an environment that does not keep Xerox from continuing to try to acquire HP. Accordingly, we have canceled our tender offer for the acquisition of HP and will no longer seek to nominate our highly qualified candidates to the HP Board of Directors. ”
Compilers of the message note that the combination of Xerox and HP still has long-term financial and strategic advantages, but the priority is “the health, safety and well-being of employees, customers, partners and shareholders.” In addition, the message expresses gratitude to the banks that agreed to finance the acquisition and did not abandon their obligations “even during the market turmoil caused by COVID-19.”
Referring to its own sources, Reuters claims that the Xerox board concluded that it would be too risky to conduct a takeover without access to the HP internal reporting necessary to assess the impact of a pandemic on a company’s business.