Xerox plotting audacious takeover of HP Inc - reports

Xerox has reportedly put funding in place, but a takeover bid is not definite

Struggling print vendor Xerox is plotting an ambitious offer for HP Inc, according to reports.

The Wall Street Journal claims that Xerox's board has discussed the possibility of a takeover, citing people familiar with the matter.

It also said that Xerox has already agreed funding informally from a major bank.

Xerox's market value is less than one third of HP's - standing at around $8bn (£6.2bn) compared with HP's $27bn.

Both vendors are currently in transitional phases.

Xerox yesterday announced that it would be selling its 25 per cent stake in Fuji Xerox, after an ill-fated merger was scuppered last year by activist investor Carl Icahn.

HP meanwhile is in the process of a restructuring that will see it strip out its regional levels of management and axe up to 9,000 jobs. Long-term CEO Dion Weisler has also stepped down, to be replaced at the helm by print boss Enrique Lores.

HP told the media that it does not comment on speculation, while Xerox did not respond to requests for comment.

The Wall Street Journal stressed that an offer from Xerox is not definite at this stage.

Xerox's share price was up nearly six per cent yesterday, while HP's was up two per cent.