3 Reasons I Ignored Xerox and Sold My HP Stock
Xerox (NYSE: XRX) recently raised its bid for HP (NYSE: HPQ) to $24 per share, consisting of $18.40 in cash and 0.149 shares of Xerox for each HP share. This marked the first time Xerox raised its bid since its unsolicited offer of $22 per share last November that included $17 in cash and 0.137 shares of Xerox.
HP rebuffed Xerox's initial offer, stating that it undervalued the company and wasn't in the best interests of its shareholders. It also accused activist investor Carl Icahn, who owns a larger stake in Xerox than HP, of engineering the deal for his own benefit.
Xerox is moving to replace HP's board with its own nominees and is launching a tender offer for investors who want to take the deal. It's unclear how this drama will play out, but I recently sold all my shares of HP at a slim profit for three simple reasons.
Source Fool.com
