Xerox, currently valued at $8bn, is eyeing up HP in a deal worth more than $30bn if it were to be accepted.
The announcement comes in in spite of a restructure HP has just embarked on, which includes the prospect of up to 9,000 job losses.
“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," the firm said in a statement.
"Against this backdrop, we have had conversations with Xerox Holdings Corporation from time to time about a potential business combination."
HP has struggled since it parted ways with HPE just four years ago. It has struggled to keep pace with more modern digitally focus businesses and recently gone through a major restructure to 'optimise costs'.
Xerox has also had its woes since the late 90's where its market capitalisation was worth nearly four times more than it is today. How can they afford a company which is worth three times as much as their current valuation ($8bn)? Xerox is expecting an influx of cash ($2.3 billion) from a deal to sell stakes in ventures with Fujifilm Holdings. Xerox has also received an informal funding commitment from a major bank, according to sources.