<p>Shares of HP Inc fell as much as 5% on Monday after the personal computer maker rejected a buyout offer from Xerox Holdings Corp, and indicated it might instead make its own offer to take over the U.S. printer maker.</p>.<p>HP stock has gained about 10% and those of Xerox around 7% since Nov. 5, when the first news reports surfaced on Xerox's $33.5 billion cash-and-stock offer to buy bigger rival HP.</p>.<p>The printer industry has been in decline for years as growth in purely electronic communication cuts the need for printed letters and documentation. Both HP and Xerox earn a chunk of their revenue from selling printers and related accessories.</p>.<p>HP said in a statement on Sunday that it recognized the potential benefits of consolidation and added that with access to diligence information on Xerox it could quickly evaluate the merits of a potential transaction.</p>.<p>Xerox has a market value of $8.4 billion and HP is valued at nearly $30 billion.</p>.<p>"We continue to believe consolidation within the printing industry makes sense given a mature and secularly challenged end demand backdrop," Credit Suisse analysts wrote in a client note.</p>.<p>Activist investor Carl Icahn, who has a stake in Xerox, told the Wall Street Journal last week that he was not set on a particular structure for a deal with HP, as long as a combination is achieved.</p>.<p>Icahn, who also owns shares in HP, is yet to issue a statement on the latest developments.</p>.<p>In its letter to HP's board, Xerox outlined about $2 billion in savings it said could be achieved within two years of the deal.</p>.<p>"HP and Xerox's portfolios are largely complimentary given different focus areas, and see opportunity for significant cost takeout if the two companies were to combine," Credit Suisse said.</p>.<p>HP shares were at $19.10 in premarket trading, while those of Xerox were down 4% at $37.38.</p>
<p>Shares of HP Inc fell as much as 5% on Monday after the personal computer maker rejected a buyout offer from Xerox Holdings Corp, and indicated it might instead make its own offer to take over the U.S. printer maker.</p>.<p>HP stock has gained about 10% and those of Xerox around 7% since Nov. 5, when the first news reports surfaced on Xerox's $33.5 billion cash-and-stock offer to buy bigger rival HP.</p>.<p>The printer industry has been in decline for years as growth in purely electronic communication cuts the need for printed letters and documentation. Both HP and Xerox earn a chunk of their revenue from selling printers and related accessories.</p>.<p>HP said in a statement on Sunday that it recognized the potential benefits of consolidation and added that with access to diligence information on Xerox it could quickly evaluate the merits of a potential transaction.</p>.<p>Xerox has a market value of $8.4 billion and HP is valued at nearly $30 billion.</p>.<p>"We continue to believe consolidation within the printing industry makes sense given a mature and secularly challenged end demand backdrop," Credit Suisse analysts wrote in a client note.</p>.<p>Activist investor Carl Icahn, who has a stake in Xerox, told the Wall Street Journal last week that he was not set on a particular structure for a deal with HP, as long as a combination is achieved.</p>.<p>Icahn, who also owns shares in HP, is yet to issue a statement on the latest developments.</p>.<p>In its letter to HP's board, Xerox outlined about $2 billion in savings it said could be achieved within two years of the deal.</p>.<p>"HP and Xerox's portfolios are largely complimentary given different focus areas, and see opportunity for significant cost takeout if the two companies were to combine," Credit Suisse said.</p>.<p>HP shares were at $19.10 in premarket trading, while those of Xerox were down 4% at $37.38.</p>