Financial Institutions including Citigroup and Bank of America have agreed to lend Xerox $24bn as it continues its attempted takeover of HP.
One of the biggest perceived stumbling blocks to the deal, which has been mooted for several months, was the question of whether or not Xerox was actually able to raise the capital necessary to fund its proposal.
But an open letter from Xerox CEO and vice chair John Visentin to HP CEO Enrique Lores and chairman of the board Chip Bergh, seems to have dispelled any fears on that front.
In the letter the Connecticut-based company said it had engaged in ‘constructive dialogue’ with many of HP’s shareholders and that it believes ‘bringing our companies together would deliver substantial synergies and meaningfully enhanced cash flow that could, in turn, enabled increased investments in innovation and greater returns to shareholders.’
Xerox has talked recently about its willingness to pursue a hostile takeover of its California-based rival, but Mr Visentin added in his letter that he was still willing to meet with Mr Lores and Mr Bergh in person to further negotiations.
