...November 8, 2019 NEW YORK (S&P Global Ratings) Nov. 8, 2019--S&P Global Ratings said today that global PC and printer services company HP Inc. (###/Stable/A-2) confirmed that it received a merger proposal from Xerox Holdings Corp. (##+/Negative/--). The parties have not yet agreed to a transaction, but we believe significant cost savings and shared R&D resources would be main drivers for a business combination. Over the past few years, Xerox has experienced growth challenges and persistent revenue declines in its printer businesses. Xerox's new management team is implementing a multi-year revenue stabilization and cost savings plans, but the company's growth prospects are uncertain given the declining demand for printer products and printed pages. HP is also pursuing new strategies, acquisitions, and cost reduction plans that create operational uncertainty. We think Xerox's possible acquisition of HP would require significant cash and debt funding and would put downward pressure on the...
