HP Announces $16 Bln Share Buyback Plan, Once Again Rejects Xerox Takeover Offer

(RTTNews) - HP Inc. (HPQ) Monday announced that it would buy back up to $16 billion worth of stock, the latest move by the PC maker to discourage a takeover bid from Xerox Holdings.

HP will buy back $16 billion worth of shares over three years. This will result in adjusted profit of $3.25 to $3.65 per share in fiscal 2022, which is about $1 more per share than analysts' current projections.

HP also said it is reaching out to Xerox to explore if there is a combination that creates value for HP shareholders that is additive to HP's strategic and financial plan.

HP said the revised Xerox proposal, announced on February 10, 2020, meaningfully undervalues HP, creates significant risk, and compromises HP's future.

Xerox offered to buy HP for $24.00 per share, which will be comprised of $18.40 in cash and 0.149 Xerox shares for each HP share.

"HP is out of the gate strong in Q1, with outstanding earnings and a robust plan to create significant value for shareholders," said Enrique Lores, President and CEO, HP Inc. "Our three-year financial targets reflect a company at the top of its game, combining the industry's best innovation with disciplined cost management and aggressive capital returns to support a compelling investment in both the short and long term."