Xerox Said to Weigh a Potential Bid for HP

Xerox's unexpected bid to acquire HP, a company three times its size, is a bold move aimed at combining their PC and printer businesses. The merger could create strong synergies, with the PC business providing cash flow and the printer business offering high margins. Regulatory challenges may arise due to business overlaps, but restructuring could lead to cost savings. Financing the $20 billion deal is feasible through a mix of stock, bank loans, and bonds, with a 30-50% chance of success.

Discuss the potential financial structures that could support the acquisition.

What is the estimated probability of the acquisition deal happening?