Who are Xerox's biggest competitors

Xerox targets HP

Apparently, printer specialist Xerox is considering taking over competitor and PC manufacturer HP. The merger should help the companies to master the change in the industry.
The pressurized copier and printer manufacturer Xerox could reach for the traditional PC manufacturer HP Inc., according to a newspaper report. Xerox is considering an offer in cash as well as shares for HP, which currently come to a market value of around 27 billion US dollars (24.3 billion euros), reported the "Wall Street Journal" on Wednesday on its website, citing with the Thing trusted people. But no decision has yet been made.

A merger could give fresh impetus to companies grappling with the changing face of the industry. In addition, significant savings would be possible in overlapping areas. Xerox is currently hoping for fresh money by selling its stake in a joint venture with Fujifilm to the Japanese technology group for 2.3 billion dollars. Xerox has also secured an informal funding commitment from a major bank. Nevertheless, it remains unclear how the group intends to handle the giant acquisition.

The share price of HP stood after the news was published in the Frankfurt trade in the plus, the paper of Xerox lost against it. HP is more than three times the size of Xerox. Each bid would include a premium on HP's current share price, the people said.

Xerox manufactures printers and copiers and makes most of its revenue from rentals and maintenance. HP sells smaller printers and is also one of the largest PC manufacturers in the world. HP announced austerity measures at the beginning of October, including cutting 9,000 jobs. In addition, the printer business should be revived, it said. Although this tends to generate higher profits, it has problems because customers buy ink cartridges elsewhere.

HP historically sold printers at a loss and then made money selling printer cartridges. With a new business model, HP wants to bind customers to the purchase of a printer with recurring discounts on ink cartridge purchases. HP is also investing in 3-D printing.

The share prices of the companies have developed differently lately: The Xerox paper rose by 84 percent this year - after the announcement of the austerity program and strong quarterly results. The price of HP fell by 10 percent since the beginning of the year.

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