SINGAPORE (Nov 7): Photocopier maker Xerox Holdings Corp is making a US$33 billion ($45 billion) takeover offer for HP Inc, according to reports.

The personal computer giant, which is more than three times bigger than Xerox, on Nov 6 confirmed the bid, but declined to disclose the offer price.

“We received a proposal transmitted yesterday. We have a record of taking action if there is a better path forward and will continue to act with deliberation, discipline and an eye toward what is in the best interest of all our shareholders,” HP said in a statement.

At the close of trading on Nov 5 before news broke of the potential deal, HP’s market capitalisation was about US$27.3 billion while Xerox’s was around US$8 billion.

To finance the cash-and-stock offer, Xerox is said to have lined up financing from Citigroup Inc. The company is estimated to need to take on more than US$20 billion of debt to help the cash portion of the deal.

According to reports, Xerox believes it can achieve at least US$2 billion in annual cost synergies by creating an office technology supplies giant.

But, citing unnamed sources, the reports say HP is not convinced Xerox has the relevant experience for a complex merger. Some analysts have also raised potential stumbling blocks to integration – even if the deal goes through.

Meanwhile, HP in the statement admitted it has had conversations with Xerox “from time to time” about a potential business combination. However, it added that it has “great confidence” in its ability to “position the company for continued success in an evolving industry”.