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Xerox makes pitch to H-P shareholders, eyes $1.5B sales growth taret

|About: Xerox Holdings Corporation (XRX)|By: , SA News Editor

Xerox (XRX -0.8%) says it has started meeting today with HP (HPQ +0.2%) shareholders to make the case for its proposed $33B merger of the companies.

In a new investor presentation, XRX argues the combined company would be worth ~$31/share to H-P investors on a pro-forma basis and would generate $4B-plus in free cash flow in the first year before taking any synergies into account.

XRX already has said it sees the combination creating ~$2B in synergies, which could be achieved in 24 months; the new presentation goes further, saying a merger would allow cross-selling and a unified platform for clients which could yield $1B-$1.5B in revenue growth.

H-P last month rejected XRX's unsolicited, cash-and-stock offer worth $22/share, arguing it undervalued the company, which prompted XRX to say it would take its case straight to H-P shareholders.