Coronavirus Disruptions to Hurt HP Q2 as It Fends Off Xerox Bid
HP Inc. expects to report earnings between 49 and 53 cents a share for fiscal Q2 ending late April that includes an 8 cent hit from coronavirus-induced business disruptions, said Chief Financial Officer Steve Fieler on a Q1 call. Apple…
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also is being affected by the coronavirus (see 2002250050). HP is “reaching out” to Xerox to “explore” a possible “combination,” said CEO Enrique Lores. Xerox offered to buy HP for $24 a share Feb. 10. “We firmly believe that this is not in the best interest of HP shareholders,” said Lores Monday. The $24-a-share bid “meaningfully undervalues HP,” said Lores. HP shares closed 5.5% higher Tuesday at $23.35. The two companies aren’t a good match because they lack “synergies,” the HP chief said. There’s “no overlap” between Xerox and 90 percent of HP’s businesses, he said. The would-be buyer didn't comment Tuesday.