HSBC France to leave its Champs Elysees headquarters

HSBC inherited the its headquarters when it bought the French retail operations of Crédit Commercial de France in 2000 (Reuters/File)
Updated 16 October 2019

HSBC France to leave its Champs Elysees headquarters

  • HSBC France has a project of moving its headquarters by 2020
  • The building would be fit for 1,200 employees working mostly in corporate and investment banking and wealth management

PARIS/LONDON: HSBC France said on Wednesday its teams will leave a prestigious headquarters on Paris' Champs Elysees avenue by 2020 in an emblematic move ahead of the planned sale of its retail business in the country.
The exit and planned sale, following a strategic review of the group's French retail activities, are part of a broader cost-cutting effort under interim Chief Executive Noel Quinn.
"HSBC France has a project of moving its headquarters by 2020 to 38 av Kleber, 500 meters away from its actual headquarters that was sold in 2010," the bank said in a statement.
The building would be fit for 1,200 employees working mostly in corporate and investment banking and wealth management.
Another 500 employees will be moved to HSBC's hub in La Defense business district which now houses 4,000 of the bank's employees and to branches close to the Champs Elysees building.
HSBC France sold its headquarters at 103 avenue Champs Elysees, and a building in front of it at 15 rue Vernet, to Qatari investors and has rented them since then.
The move is necessitated because the owner wants to regain control of the buildings and also because HSBC needs to save money, a source familiar with the matter said on Wednesday.
Office rents in Paris are rising to levels not seen since at least 2003, according to Immostat data, as vacancy rates are at record lows.
HSBC inherited the historic headquarters when it bought the French retail operations of Crédit Commercial de France (CCF) in 2000.
At the beginning of the 20th century, the building was a hotel where World War One spy and exotic dancer Mata Hari was arrested.
HSBC Holdings has hired U.S. investment bank Lazard Ltd to sell its French retail business, a source close to the matter told Reuters on Tuesday.
Quinn is expected to unveil the first details of his strategic overhaul of the bank when it reports third-quarter earnings on Oct. 28.
Quinn is auditioning for the full-time CEO job and insiders said he is under pressure to take decisive action after Chairman Mark Tucker indicated his predecessor John Flint had not moved quickly enough to turn around the lender's performance.


HP rejects Xerox takeover bid, says open to acquiring Xerox instead

Updated 18 November 2019

HP rejects Xerox takeover bid, says open to acquiring Xerox instead

  • In rejecting Xerox's $33.5 billion cash-and-stock acquisition offer, HP said the offer “significantly” undervalued the personal computer maker
  • Xerox made the offer for HP on Nov. 5 after resolving its dispute with its joint venture partner Fujifilm Holdings Corp.
NEW YORK: HP Inc. said on Sunday it was open to exploring a bid for US printer maker Xerox Corp. after rebuffing a $33.5 billion cash-and-stock acquisition offer from the latter as “significantly” undervaluing the personal computer maker.
Xerox made the offer for HP, a company more than three times its size, on Nov. 5, after it resolved a dispute with its joint venture partner Fujifilm Holdings Corp. that represented billions of dollars in potential liabilities.
Responding to Xerox’s offer on Sunday, HP said in a statement that it would saddle the combined company with “outsized debt” and was not in the best interest of its shareholders.
However, HP left the door open for a deal that would involve it becoming the acquirer of Xerox, stating that it recognized the potential benefits of consolidation.
“With substantive engagement from Xerox management and access to diligence information on Xerox, we believe that we can quickly evaluate the merits of a potential transaction,” HP said in its statement.
The move puts pressure on Xerox to open its books to HP. Xerox did not immediately respond on Sunday to a request for comment on whether it will engage with HP in negotiations as the potential acquisition target, rather than the acquirer.
HP on Sunday published Xerox CEO John Visentin’s Nov. 5 offer letter to HP, in which he stated that his company was “prepared to devote all necessary resources to finalize our due diligence on an accelerated basis.”
Activist investor Carl Icahn, who took over Xerox’s board last year together with fellow billionaire businessman Darwin Deason, said in an interview with the Wall Street Journal last week that he was not set on a particular structure for a deal with HP, as long as a combination is achieved. Icahn has also amassed a 4% stake in HP.
Xerox had offered HP shareholders $22 per share that included $17 in cash and 0.137 Xerox shares for each HP share, according to the Nov. 5 letter. The offer would have resulted in HP shareholders owning about 48% of the combined company. HP shares ended trading on Friday at $20.18.
Many analysts have said there is merit in the companies combining to better cope with a stagnating printing market, but some cited challenges to integration, given their different offerings and pricing models.
Xerox scrapped its $6.1 billion deal to merge with Fujifilm last year under pressure from Icahn and Deason.
Xerox announced earlier this month it would sell its 25% stake in the joint venture for $2.3 billion. Fujifilm also agreed to drop a lawsuit against Xerox, which it was pursuing following their failed merger.

Test for new HP CEO
In 2011 as the centerpiece of its unsuccessful pivot to software. Little over a year later, it wrote off $8.8 billion, $5 billion of which it put down to accounting improprieties, misrepresentation and disclosure failures.
More recently, HP has been struggling with its printer business segment recently, with the division’s third-quarter revenue dropping 5% on-year. It has announced a cost-saving program worth more than $1 billion that could result in its shedding about 16% of its workforce, or about 9,000 employees, over the next few years.
Xerox’s stock has rallied under Visentin, who took over last year as CEO. However, HP said on Sunday that a decline in Xerox’s revenue since June 2018 from $10.2 billion to $9.2 “raises significant questions” regarding the trajectory of Xerox’s business and future prospects.