Activist investor Carl Icahn backs HP-Xerox cope with billion-dollar stake in HP – Wikibusiness
- Activist investor Carl Icahn instructed The Wall Avenue Journal that he helps Xerox’s potential takeover of HP.
- The billionaire — who already holds a 10.6% place in Xerox — additionally revealed a 4.2% stake in HP value about $1.2 billion, in keeping with the WSJ.
- Icahn mentioned he helps the deal due to the fee synergies it may create, which Xerox mentioned may complete north of $2 billion.
- Watch Xerox and HP commerce dwell on Markets Insider.
Billionaire activist investor Carl Icahn helps the mix of printer makers Xerox and HP, in keeping with The Wall Avenue Journal.
The vocal Xerox shareholder instructed the WSJ that he additionally owns a 4.2% stake in HP value round $1.2 billion based mostly on the corporate’s inventory worth as of market shut Wednesday.
Icahn, who owns a 10.6% stake in Xerox, mentioned he helps the deal due to its potential for value synergies, which Xerox mentioned may add as much as greater than $2 billion.
“I think a combination is a no-brainer. I believe very strongly in the synergies,” Icahn instructed the WSJ.
He added: “There will probably be a choice between cash and stock and I would much rather have the stock, assuming there’s a good management team.”
The WSJ reported final week that Xerox was contemplating a takeover of HP, sending shares of each corporations climbing.
HP is greater than thrice the dimensions of Xerox, and a suggestion would possible come at a premium to HP’s $28 billion market worth.
In line with the WSJ, Icahn started sizing up HP earlier this 12 months after its shares plunged 17% in a single day on weak earnings. He started scooping up shares in April, however had no considered a cope with Xerox on the time, the WSJ reported.
An HP spokesperson confirmed Icahn’s stake in an e mail to Markets Insider.
“We are aware of Carl Icahn’s investment and are committed to doing what is in the best interests of all HP shareholders,” the spokesperson mentioned in an e mail Thursday.
Icahn stopped constructing his place in HP in August as his stake approached the 5% mark, which might require him to reveal it.