Activist investor Carl Icahn urges the proposed merger of Xerox Holdings Corp. and HP Inc., arguing that a combination of printer manufacturers could bring big profits to investors.
Icahn, which holds a 10.6% interest in Xerox, headquartered in Norwalk, Connecticut
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told the Wall Street Journal that it also owns 4.24% of HP
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worth about $ 1
Xerox made an offer to buy HP for $ 33 billion or $ 22 per share last week – $ 17 cash and 0.137 Xerox approval for each HP share release. This is a bold move given HP's $ 29 billion market value over Xerox. The deal would unite companies that were once giants of American industry, but whose assets have declined in the digital age.
In his first public commentary on the potential deal, the 83-year-old billionaire said he believed it was best to protect the interests of both shareholder groups in light of Xerox's $ 2 billion savings potential and the fact that it combined Company can market a more balanced portfolio of printer offerings.
"I think a combination is a breeze," Icahn said. "I strongly believe in the synergies," he said, adding, "There will likely be a choice between cash and stocks, and I would have the stock much better, provided there is a good management team. "
An enhanced version of This report appears on WSJ.com.
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