By Dave Sebastian

Xerox Holdings Corp. said it is pausing its campaigning efforts in its takeover bid for HP Inc., a sign that the coronavirus pandemic is affecting deal making.

The company said Friday it is postponing additional presentations, interviews with the press and meetings with HP shareholders.

"In light of the escalating Covid-19 pandemic, Xerox needs to prioritize health and safety of its employees, customers, partners and affiliates over and above all considerations, including its proposal to acquire HP, " Xerox Vice Chairman and Chief Executive John Visentin said Friday.

The company said it doesn't consider the market decline since it put out its bid or the temporary suspensions of HP shares in recent days as a result of marketwide circuit breakers as a failure of any condition to acquire HP. Xerox said it would take the same view in future trading halts.

HP last week rejected Xerox's $35 billion bid to take over the company, saying a combination would disproportionately benefit Xerox shareholders and that Xerox doesn't have the operational experience in HP's sectors, such as personal systems, home printing and 3-D and digital manufacturing.

The two companies dominate different areas of the printer market and have both been cutting costs as the need for printed documents declines. Xerox primarily makes large printers and copy machines and generates revenue from renting them to businesses and maintaining the devices. HP mainly sells smaller printers and printing supplies, and it is also one of the biggest PC makers in the world, though its printer business is more lucrative.

Write to Dave Sebastian at dave.sebastian@wsj.com

(END) Dow Jones Newswires

March 13, 2020 09:46 ET (13:46 GMT)

Copyright (c) 2020 Dow Jones & Company, Inc.
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