HP rejects merger request by Xerox saying health in doubt

Bloomberg

HP Inc rejected Xerox Holdings Corp’s request to open its financial books after turning down its unsolicited merger offer last week, saying that the smaller suitor hasn’t proven it’s healthy enough to raise the funding or complete such a transaction.
“Your proposal does not constitute a basis for due diligence or negotiation,” Chief Executive Officer Enrique Lores and Chairman Chip Bergh wrote in a letter to Xerox CEO John Visentin. Xerox’s bid of $22 a share undervalues HP and its threats to launch a proxy fight smack of desperation, according to the letter, which adds that Xerox has failed to answer questions about its financial health.
“It is clear in your aggressive words and actions that Xerox is intent on forcing a potential combination on opportunistic terms and without providing adequate information,” the letter said.
“Your now-public urgency to accelerate towards a deal, still without addressing these questions, only heightens our concern about your business and prospects.”