Xerox (NYSE: XRX) sent a buyout offer to fellow print technology and data management veteran HP (NYSE: HPQ) a couple of weeks ago. HP's board of directors considered the offer and responded over the weekend with a literal "Dear John" letter.
So HP turned down Xerox's $33.5 billion acquisition bid, arguing that the offer provided poor value for HP's shareholders. It's not the end of the conversation between the two companies, however. HP would be happy to consider an offer from Xerox on better terms.
What would it take for Xerox to provide a deal that HP's board and shareholders would accept? Let's take a look.