Xerox Holdings on Monday announced a sweetened tender offer you for HP at about $24 a share, or $34 billion, an boost of about $2 per share from its preceding bid.

Xerox known as its proposal “compelling” and mentioned it would allow HP shareholders “to know immediate money worth and delight in close to equal participation in significant foreseeable future upside.”

HP’s board now rejected a bid by Xerox in November 2019, but Xerox mentioned in the push release saying the higher offer you that HP’s greatest stockholders “consistently state that they want the improved returns, enhanced expansion prospects, and best-in-course human money that will final result from a mixture of Xerox and HP.”

Xerox also mentioned that any synergies realized in a mixture of Xerox and HP would be “incremental to any worth that HP can make by revising its strategic prepare or drastically modifying its money allocation coverage to incorporate further share repurchases.”

HP announced in Oct 2019 that it will cut concerning 7,000 and 9,000 careers by the stop of fiscal 2022 as section of a broader restructuring prepare that it estimates will help save $1 billion a yr. As a result of synergies, Xerox states it can create $2 billion of operate-level cost savings in 24 months.

As of 12:fifty six p.m. Jap time, HP had not issued a assertion in response to Xerox’s new bid.

Xerox’s new offer you is comprised of $18.40 in money and .149 Xerox shares for just about every HP share. It is dependent on Xerox’s closing share selling price of $37.68 on February 6. The headline offer you selling price of $24 per share signifies a forty one% top quality to HP’s unaffected 30-working day, volume-weighted ordinary buying and selling selling price of $seventeen, Xerox pointed out.

Nevertheless, the offer you is a bit underneath HP’s 52-7 days large of $24.09 and almost $2 per share off HP’s 3-yr large.

In unanimously rejecting Xerox’s proposal in November, HP’s board of directors argued that the offer you undervalued HP and was not in the best desire of shareholders.

The tender offer you will be introduced on March 2. Xerox mentioned in December that it programs to nominate 11 independent candidates to HP’s board. The board candidates consist of Kim Fennebresque, former chief government of Cowen Group Jacob Katz, former chairman of Grant Thornton and former senior executives from Aetna, United Airways, Hilton Hotels, Novartis, and Verizon.

“These nominations are a self-serving tactic by Xerox to advance its proposal, which noticeably undervalues HP and results in significant threat to the detriment of HP shareholders,” HP said at the time.

Activist trader Carl Icahn, who has a 4.2% stake in HP and a 10.9% stake in Xerox, has urged HP shareholders in favor of the merger to reach out to the board.

HP’s current market cap is additional than $30 billion additional than 3 situations that of Xerox, but Xerox states it has now lined up financing for the offer.

HP shares rose 1.4%, to $22.05, on the news, when Xerox shares were being up 1.3%.

Photograph by Justin Sullivan/Getty Visuals

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