LONDON (ShareCast) - (Sharecast News) - Computer maker HP reiterated on Sunday its rejection of Xerox's offer to buy out the company for $33.5bn.
"We reiterate that we reject Xerox's proposal as it significantly undervalues HP," the company said in a letter to Xerox made public on Sunday.

Indeed, the manufacturer not only rebuffed Xerox's offer, it also said that it was open to launching its own bid for the US printer maker.

HP wants to determine if a combination of the two companies "has any merit" before it gives Xerox access to any non-public information about its business.

"It is clear in your aggressive words and actions that Xerox is intent on forcing a potential combination on opportunistic terms and without providing adequate information," HP chief executive Enrique Lores and chairman Chip Bergh wrote in a letter sent to John Visentin, Xerox's boss.

"Fundamental issues have not gone away, and your now-public urgency to accelerate toward a deal [...] only heightens our concern about your business and prospects," they wrote.

Xerox offered HP shareholders $22.0 per share, including $17.0 in cash and 0.137 Xerox share for each HP share, Reuters reported.

"There continues to be uncertainty regarding Xerox's ability to raise the cash portion of the proposed consideration and concerns regarding the prudence of the resulting outsized debt burden on the value of the combined company's stock even if the financing were obtained," the letter added.

Xerox threatened on Thursday to take its $33.5bn buyout bid for HP hostile if the company refused to hold "friendly" discussions before Monday.

"The overwhelming support our offer will receive from HP shareholders should resolve any further doubts you have regarding the wisdom of swiftly moving forward to complete the transaction," Visentin had written in a letter to HP penned during the previous week.

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