Carl Icahn Takes Stake in HP, Pushes for Xerox Merger

The activist investor wants a marriage between the two tech companies.

Activist investor Carl Icahn has purchased roughly $1.2 billion in HP Inc. stock. Icahn is now pushing the personal computer maker to merge with printing giant Xerox. Icahn now owns a 4.2% stake in HP. He also owns 10.6% of Xerox. An HP-Xerox merger would earn him a lot of money.

“I think a combination is a no-brainer,” Icahn told the Wall Street Journal.

Activist Investor Carl Icahn Pushes for HP-Xerox Merger

The news comes a week after Xerox offered to purchase HP for $33 billion in cash and stock. An HP-Xerox merger would produce roughly $2 billion in annual cost synergies, according to a Reuters report from last week. Icahn said in an interview that he started eyeing HP stock in February.

He started buying shares in April but said he didn’t have a merger in mind when he started that process. Icahn thinks that an HP-Xerox merger would establish a company with a “more balanced” list of printer offerings.

A Busy 2019 for Icahn and Activists

This isn’t the first merger that Icahn has pushed in 2019. In June, Icahn saw Eldorado Resorts purchase Caesars Entertainment Corp. for $17.3 billion. Icahn had board seats at Caesars.

He also recently took a shot at Occidental Petroleum after the energy giant announced plans to shutter half of its Permian production. Finally, Icahn announced earlier this year that he will relocate from the Northeast to Florida.

“My employees have always been very important to the company, so I’d like to invite you all to join me in Miami,” Icahn wrote in a May 17 letter.

Free Industry News

Subscribe to our free newsletter for updates and news about alternatives investments.

  • This field is for validation purposes and should be left unchanged.

Alt Insights

January 16, 2020

ESG: Lately-turned Tesla Bull Jim Cramer Adds Fink To The Mix

ESG: Lately-turned Tesla Bull Jim Cramer Adds Fink To The Mix

Latest Alternative Investment News

Act Analytics Launches New ESG Portfolio Analytics Platform
January 27, 2020     ESG and Sustainability, News

Act Analytics announced the launch of a new Environmental, Social and Governance (ESG) portfolio analytics platform. The new platform allows RIAs to compare, contrast, and construct customized ESG portfolios. The…

Digital Assets: Covantis, a Blockchain-based Agri-business Platform, Ties With ConsenSys
January 27, 2020     Digital Assets, News

Covantis is a blockchain-focused project backed by multinational agri-business companies Cargill, Archer Daniels Midland Company, Bunge and Louis Dreyfus Company. Launched in 2018, the project aims to digitize the firms’…

Bank Technology: The Driver of M&A Over the Next 10 Years?

Will 2020 be the year that we see the tipping point in bank technology? Attendees at the Bank Director Magazine Conference in Phoenix think so. The sentiment is that banks in 2030…

Bank Director Magazine Conference: Fintech, Cybersecurity and Other Worries for 2020

Tim Melvin is attending the conference in Phoenix this week. At the top of the list is competition form fintech firms and big tech companies. Millennials are more focused on…