Xerox Mulling A Bid For HP: Report

(RTTNews) - Xerox Holdings Corp. (XRX) is said to be mulling over launching a takeover bid for PC and printer maker HP Inc. (HPQ), according to a Wall Street Journal report.

Xerox is considering a cash-and-stock offer for HP, which has a current market capitalization of about $27 billion, according to people familiar with the matter.

The copier maker's board is said to have discussed the possibility Tuesday, the people said. HP is more than three times the size of Xerox and any bid would be at a premium to its current stock price.

Xerox has also reportedly received an informal funding commitment from a major bank," the people said. Further, it is also expecting a $2.3 billion windfall from a deal announced on Tuesday to sell stakes in joint ventures with Fujifilm Holdings Corp.

Xerox primarily makes large printers and copy machines, with most of its revenues coming from renting and maintaining them for businesses. Meanwhile, HP sells mainly smaller printers and printing supplies and is also one of the largest PC makers in the world.