Xerox had previously led a hostile takeover bid of HP which would combine the two legendary tech giants. HP had rejected Xerox’s proposals. In February, Xerox raised its offer to $24 per share, which would value HP at about $34 billion.
However, since Xerox sweetened its bid, the COVID-19 coronavirus outbreak spread around the world and has created economic uncertainty, and Xerox has stopped pursing the transaction.
HP shares dropped more than 2% after hours on the news, while Xerox shares barely moved after rising more than 5% during regular trading.