HP has confirmed it has received an approach from Xerox regarding a possible takeover.
Rumours that Xerox was considering a takeover bid surfaced earlier this week, with the print vendor declining to comment on speculation.
HP has now broken its silence with a statement that confirms it has been in contact with Xerox "from time to time".
The vendor said: "As reviewed at HP's most recent Securities Analyst Meeting, we have great confidence in our multi-year strategy and our ability to position the company for continued success in an evolving industry, particularly given the multiple levers available to drive value creation.
"Against this backdrop, we have had conversations with Xerox Holdings Corporation (NYSE: XRX) from time to time about a potential business combination. We have considered, among other things, what would be required to merit a transaction. Most recently, we received a proposal transmitted yesterday.
"We have a record of taking action if there is a better path forward and will continue to act with deliberation, discipline and an eye towards what is in the best interest of all our shareholders."
HP did not comment on the specifics of Xerox's proposal, but reports have suggested that Xerox is considering a cash-plus-stock offer, with funding from a major bank informally in place.
HP's market value is more than three times that of Xerox, at around $27bn (£21bn).
Xerox is yet to comment publicly.
HP's share price has climbed as much as 17.8 per cent this week, with Xerox's rising as much as 13 per cent.
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