HP Inc. Announces Termination of Shareholder Rights Plan

Rhea-AI Summary

The Board of Directors of HP Inc. (NYSE: HPQ) has approved the acceleration of the expiration date for its shareholder rights plan, terminating it as of June 25, 2020. This plan was initially set to expire on February 20, 2021. Chair Chip Bergh stated that the termination aligns with HP's current corporate governance practices, noting that there is no longer a threat of a hostile tender offer against the company. The board concluded that maintaining the plan was no longer appropriate.

Positive

• Termination of the shareholder rights plan suggests improved corporate stability and governance.
• No longer facing a hostile tender offer strengthens confidence among investors.

Negative

• None.

PALO ALTO, Calif., June 26, 2020 (GLOBE NEWSWIRE) -- The Board of Directors of HP Inc. (NYSE: HPQ) has approved an amendment to the Company’s shareholder rights plan to accelerate the expiration date of the plan to June 25, 2020, effectively terminating the plan as of that date. The limited duration rights plan was previously set to expire on February 20, 2021.

Chip Bergh, Chair of HP’s Board of Directors, said, “The shareholder rights plan was, by design, a temporary measure to protect the long-term interests of our shareholders. In reaching the decision to terminate the plan at this time, the Board took into careful consideration a variety of factors including the appropriateness of maintaining this plan when HP is no longer the subject of a hostile tender offer and corporate governance best practices.”

About HP Inc. 
HP Inc. creates technology that makes life better for everyone, everywhere. Through our product and service portfolio of personal systems, printers and 3D printing solutions, we engineer experiences that amaze. More information about HP Inc. is available at http://www.hp.com.

Editorial contacts

HP Inc. Media Relations
MediaRelations@hp.com

HP Inc. Investor Relations
InvestorRelations@hp.com

 

FAQ

What does the termination of HPQ's shareholder rights plan mean?

The termination indicates that HPQ is no longer facing a hostile takeover, reflecting stability in its corporate governance.

When was HPQ's shareholder rights plan terminated?

The shareholder rights plan was terminated on June 25, 2020.

Why did HPQ's Board of Directors decide to terminate the rights plan?

The Board decided to terminate the plan as HP is no longer subject to a hostile tender offer and to align with corporate governance best practices.

What was the original expiration date of HPQ's shareholder rights plan?

The original expiration date was set for February 20, 2021.