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HP had said in November it was open to exploring a bid for Xerox.Elise Amendola/The Associated Press

HP Inc said on Wednesday that Xerox Holdings Corp securing financing for its US$33.5-billion takeover offer for the personal computer maker is not a basis for a discussion and reiterated that the proposal still undervalues the company.

The U.S.-based printer maker had said on Monday it secured US$24 billion in financing for the proposal, a deal that HP is opposing.

“Your letter dated January 6, 2020 regarding financing does not address the key issue – that Xerox’s proposal significantly undervalues HP – and is not a basis for discussion,” the company said in a letter to Xerox on Wednesday.

Xerox had offered HP shareholders US$22 per share, involving $17 in cash and 0.137 Xerox share for each HP share, according to a Nov. 5, 2019 letter.

HP had said in November it was open to exploring a bid for Xerox, stating that it recognizes the potential benefits of consolidation.

Billionaire investor Carl Icahn, who has a 4.2% stake in HP and a 10.9% stake in Xerox, and has been pushing for a merger, was not immediately available for comment.

Xerox was also not immediately available to comment on the letter.

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