HP Inc. has confirmed that Xerox Holdings Corp. made a takeover offer — a potential deal between two iconic names that would reshape the printing industry.
"We have had conversations with Xerox Holdings Corporation from time to time about a potential business combination," the Palo Alto, California-based company said Wednesday in a written statement. "We received a proposal transmitted yesterday. 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."
Citigroup Inc. has agreed to provide Xerox financing to swallow HP, Bloomberg News reported. The company would likely need to take on at least $20 billion of debt to close the deal, which was reported earlier by the Wall Street Journal. HP's market capitalization was about $27.3 billion at the close of trading on Tuesday, while Xerox's was $8 billion before news broke of the potential deal.