• Based on the article, what is the strategic rationale for the transaction?
• What proportion of Xerox's proposed deal for HP is stock versus cash consideration?
• How has HP sought to block Xerox's takeover of the company?

Xerox Moves to Buy All of HP's Shares in Public Takeover Bid; HP has resisted the deal while saying it is open to a combination on different terms Maidenberg, Micah . Wall Street Journal (Online) ; New York, NY. [New York, N.Y]02 Mar 2020. (5'ProQuest document link FULL TEXT Xerox Holdings Corp. has launched an effort to acquire all of HP |nc.'s shares outstanding, valuing the maker of printers, printer supplies and personal computers at nearly $35 billion. Palo Alto, Calif-based HP said Monday that its board is evaluating the offer but advised stock owners not to make any decisions regarding their holdings now. HP has said Xerox's offer undervalues its business but that it is open to a different potential deal to combine the two companies. A deal would join two household names that have been trying to retool their businesses as the need for printed documents declines. HP, which had a market value of $31 .8 billion as of Monday's close, is significantly larger than Xerox, whose market capitalization was about $7.1 billion. Under the deal, Xerox is offering HP shareholders $24 a share in cash and stock. Shares of HP rose 5.2% to $21.86 Monday, amid a broader market rally, while those for Xerox gained 4.1% to $33.51. Xerox makes larger printers and copy machines and generates revenue from renting them to businesses and maintaining the devices. HP sells smaller printers, printer supplies and personal computers. Xerox has argued a combination would create a printer-and-PC behemoth better equipped to deal with industrywide declines in the digital era. It has said the companies could yield cost savings of more than $2 billion by combining forces, though HP has been skeptical of that figure. HP also has cast doubt on Xerox's business prospects. Last week, HP said it would buy back $15 billion of its stock as it worked to block Xerox from taking it over. Activist investor Carl Icahn has stakes in both companies and supports a combination. Write to Micah Maidenberg at micah.maidenberg@wsj.com Credit: By Micah Maidenberg DEI'AILS Subject: Tender offers; Acquisitions &mergers; Stockholders Location: Palo Alto California People: Icahn, Carl C Company / OI'QEHiZtiO: Name: Xerox Corp; NAICS: 333316, 333318, 51 1 130; Name: HP Inc; NAICS: 334111, 334118 ELQI. @t l Lz'v r._=':r-ll;H.-Al :L'- L\".- stintrl.l"t_1:;l_i';'_xI I_.[_I'-..1 Page 1 of 2