HP rejects takeover offer from Xerox

HP Inc. says its board has rejected a roughly $33.5 billion takeover offer from Xerox.

The Palo Alto, California-based company said the cash and stock deal undervalues its business and its board cited concerns about “outsized” debt levels should the companies combine.

HP, which makes computers and printers, said it recognizes the potential benefits of consolidation and remains open to exploring other options to combine with Xerox Holdings Corp.

Both companies have faced difficulties as the demand for printed documents and ink have waned.