HP continues to resist Xerox acquisition

HP headquarters in Palo Alto

Management recently said it wanted to talk to Xerox to explore a possible combination in the interests of shareholders.

(Photo: AFP)

Palo Alto The PC and printer manufacturer HP Inc continues to resist the takeover efforts of the much smaller printer and copier manufacturer Xerox. Xerox’s offer reflects the value of HP not sufficiently reflected, announced on Thursday in Palo Alto, California. In addition, given the resulting debt, the acquisition would result in significant financial risks for HP shareholders.

Xerox has been trying to get HP since the fall, but it was down. In February the group increased its offer and since then has offered $ 24 per share in cash and Xerox paper. In total, Xerox would pay almost $ 35 billion for HP. The driving force behind a possible deal is the controversial US investor Carl Icahn, who holds large shares in both groups.

Most recently, HP management had said it wanted to hold talks with Xerox to explore a possible combination in the interests of shareholders, but at the same time had increased its share buyback program to $ 15 billion to help investors in the event of a hostile takeover attempt.

More: HP boss Enrique Lores is under pressure

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Apple iPhone chip vendor Qorvo lowers driving due to coronavirus

People wearing face masks walk past an Apple store in a mall, while the country is hit by an outbreak of the new coronavirus in Beijing, China on February 18, 2020.

Carlos Garcia Rawlins | Reuters

Qorvo, a radio frequency chip supplier for Apple’s iPhone, lowered fourth-quarter revenue expectations to $ 770 million on Tuesday. The company forecast revenue of $ 800 million to $ 840 million on January 29th.

“The new coronavirus (COVID-19) has had an impact on the smartphone supply chain and customer demand more than expected,” said Qorvo. “The full impact of COVID-19 remains difficult to predict given the uncertainty of the extent, duration and geographic scope of the epidemic,” according to a press release. Qorvo is expected to report 4th quarter results on May 5, 2020.

Apple is expected to announce a new low-cost iPhone by spring, possibly called the iPhone SE2. Typically announces its new flagship iPhones in September.

In mid-February, Apple said it did not expect to meet its quarterly revenue forecast due to lower global iPhone supply and weak Chinese demand. 15% of its revenue comes from the region. Previously, Apple had forecast net sales of between $ 63 billion and $ 67 billion for the second fiscal quarter, although it did not provide a new forecast.

On February 28, Apple CEO Tim Cook said he believed China is controlling the coronavirus. “When we look at the parts being made in China, we reopened the factories, so the factories are working through the conditions to open up. They are reopening,” he said.

On Tuesday, the accuracy of Hon Hai, who builds the Apple iPhone, said that production has reached 50% of the seasonal capacity required and that, according to its current schedule, plans to reach “full seasonal capacity by the end. in March. ” But Hon Hai warned that “there are still many [of] uncertainties that we cannot quantify on the potential impact [of] for the whole year. ”

Qorvo is the last of the technology companies to suffer from the deadly impact of the coronavirus that has made at least 91,300 people sick.

PC makers have also indicated that this cycle will be affected by the coronavirus. Last week, HP warned during its first quarter revenue tax phone call that production constraints could delay corporate computer updates to the second half of 2020. Lenovo also warned that supplies would be limited in the first quarter.

Microsoft, which relies on Windows sales to those computer manufacturers, said its more personal customization unit would miss the segment guide during the third fiscal quarter, noting that “Windows OEM and Surface have a more negative impact than previously expected.

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PayPal warns that coronavirus will have a negative impact on first quarter revenue

A sign is posted outside the PayPal office in San Jose, California.

Justin Sullivan | Getty Images

PayPal said Thursday that the coronavirus outbreak could have a negative impact on its revenue expectations and warned that revenue for the first quarter of this year would be towards the bottom of the indications given when it reported earnings. in January.

The company said it now expects first quarter revenue to reach the bottom end of its range from $ 4.78 billion to $ 4.84 billion. PayPal left the same GAAP guide for the first quarter and non-GAAP EPS in the same way.

“We currently estimate the negative impact of COVID-19 as an approximate one percentage point decrease, both on a spot and neutral basis in foreign currency, to PayPal’s revenue growth on an annual basis for the first quarter, compared to the guiding revenue provided on January 29, 2020, “said the company in a press release.

PayPal said that international e-commerce activity has been affected by the flu-like virus.

US stocks plummeted this week to renewed fears that the coronavirus will slow global economic growth. More than 81,400 people have been sick globally and at least 2,770 have died from the virus.

The release of PayPal comes after Microsoft lowered its lead on Wednesday due to coronavirus problems. Apple also reported last week that it did not expect to reach its quarterly revenue guide due to the fast spreading virus.

PC makers have also indicated that this cycle will be affected by the coronavirus. HP warned Monday during its first quarter tax call that production constraints could delay business updates to the second half of 2020. Lenovo also warned that supplies would be limited in the first quarter.

Investors are likely to hear from Dell, the third largest PC supplier, when reporting earnings on Thursday afternoon.

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