On Sunday, November 17, 2019, HP Inc. announced that its board of directors had unanimously decided to reject an acquisition bid from Xerox. The board said the offer undervalues the company and is not in the interests of the shareholders. Xerox offered $22 per share, consisting of 77% in cash and 23% in Xerox stock, representing a total value of $33.5 billion. HP Plans to Downsize and Cut Costs In October 2019, HP announced a fiscal-year 2020 restructuring plan to simplify its operating model and become a more digitally enabled company. The restructuring aims to save $1 billion annually by the end of fiscal 2022. In its response rejecting the offer, HP management cited its confidence in its strategy and ability to execute to continue driving sustainable long-term value. HP’s Concerns Regarding Xerox’s Recent Struggles HP management also noted Xerox’s declining revenues, noting concerns about the trajectory of the business and its future prospects. These concerns are exacerbated by the high amount of debt the acquisition would require, leaving the newly created company with a heavy debt load, and also that HP’s $29 billion market cap is more than three times that of Xerox.  HP Open to Future Consideration Despite rebuffing the offer, HP commented that it remains open to exploring whether there is value to be created for HP shareholders through a potential combination with Xerox. HP has asked Xerox for access to additional information to evaluate a potential future transaction.