Xerox has dropped its bid to merge with HP, people familiar with the matter confirmed to CNBC’s David Faber. The news was previously reported by the Wall Street Journal.
Xerox had previously led a hostile takeover bid of HP which would combine the two legendary tech giants. HP had rejected Xerox’s proposals. In February, Xerox raised its offer to $24 per share, which would value HP at about $34 billion.
However, since Xerox sweetened its bid, the COVID-19 coronavirus outbreak spread around the world and has created economic uncertainty, and Xerox has stopped pursing the transaction.
HP shares dropped more than 2% after hours on the news, while Xerox shares barely moved after rising more than 5% during regular trading.