Xerox's HP bid valued below $23/share

Xerox's (XRX +3.2%) bid for HP (HPQ +10.9%) includes a takeover premium and is valued at less than $23 per share, according to WSJ sources.

HP shares closed yesterday at $18.40.

JPMorgan analyst Paul Coster sees the deal looks feasible and has merit with the resulting company able to innovate faster, but the size and complexity of the deal could be hurdles.

Carl Icahn, who has a 10.6% stake in Xerox, could play a major role in the deal's outcome.