Topic: How To Invest

Wall Street Stock Forecaster Hotline – Friday, February 14, 2020

Article Excerpt

HP INC., $22.37, New York symbol HPQ, is still a hold. On November 1, 2015, the old Hewlett-Packard Co. split into two firms—HP Inc. and Hewlett-Packard Enterprise (see below). For every share they held in the old HP, investors received one share in each of the new companies. The stock moved up this week in response to a higher takeover offer from copy-machine maker Xerox Holdings Corp. (New York symbol XRX). Under the terms of the new bid, investors would receive $18.40 in cash (up from $17.00) and 0.149 of a Xerox share (up from 0.137) for each HP share they hold. Based on current prices, that offer is worth $24.04 a share, or 7.4% more than current stock price. That suggests investors feel Xerox would have trouble raising the necessary funds to cover the cash portion, which would total roughly $27 billion. That’s 3.4 times Xerox’s current market cap (the total value of all outstanding shares) of $8.05 billion. HP plans to formally respond…

You are trying to access subscriber-only content.

To read this article, you may subscribe or sign in.
If you are already a subscriber, log in here.

If you wish to become a subscriber, click here. Or you may enjoy access to all our publications when you become a Member of Pat McKeough's Inner Circle Pro.