HP confirms it received a business proposal from Xerox

Xerox is in talks with HP Inc. about a possible "business combination" during a time when digital products increasingly displace printed materials.

HP issued a statement on Wednesday acknowledging an offer from the copier maker and disclosing it has had similar discussions in the past. The statement did not say what price or deal Xerox offered.

It also didn't overtly indicate whether HP is moving forward with a merger or acquisition.

"We have had conversations with Xerox Holdings Corporation from time to time about a potential business combination," HP said in an emailed statement. "We have considered, among other things, what would be required to merit a transaction. Most recently, we received a proposal transmitted yesterday."

The investment bank Citigroup Inc. agreed to give Xerox the financing it needs to acquire HP, a person familiar with the matter told Bloomberg. HP with its $27 billion market value is three times larger than Xerox, which is valued at $8 billion.  

Both companies have seen better days, and are grappling with declining consumer interest in printers, hard copy documents and ink.

By pairing the two businesses, they could reduce costs and develop competitive technologies. A Wall Street Journal report says Xerox would expect to save more than $2 billion from a combination with HP.

HP stock was up 6.36% on the news and Xerox was up 3.55%.

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