This, in a nutshell, is the situation with the ongoing pursuit by Xerox of its rival printer-maker. With HP management uninterested in entertaining acquisition offers, Xerox has said it will take its offer to HP shareholders directly. To that end, today, Xerox launched a tender offer to acquire all of HP's shares from the shareholders who own them.
Xerox is offering a deal that it values at $24 per HP share, or about $34 billion in total, offering $18.40 cash, and throwing in 0.149 Xerox shares on top of the cash per HP share. Xerox has only about $2.7 billion in cash on hand, however. So to get the rest of what it needs, the company will borrow up to $24 billion from a consortium of banks that includes Bank of America, Citigroup, Credit Agricole, Truist, Mizuho, MUFG, PNC, and Sun Trust Robinson Humphrey.
Xerox is inviting HP shareholders to tender their shares before 5 p.m. on April 21. Because Xerox's goal is to gain control over HP preparatory to a vote to approve a merger, Xerox is conditioning its offer upon (among other things) having a majority of HP shares tendered to it. Failing that, the tender offer may be extended, modified -- or withdrawn.
To ward off Xerox's hostile takeover attempt, HP has counteroffered to buy back up to $15 billion worth of its shares itself. Coincidentally, HP's offer could also potentially see half of its shares removed from the market. Thus, the more shares HP buys, the fewer there will be remaining to accept Xerox's tender.