The US printer maker has offered to pay 35 billion dollars for taking over the US PC maker HP, HP has rejected the offer concerning xerox’s debt-ridden balance sheet.

HP INC rejected Xerox Holding corp’s raised takeover offer of 35 Billion dollars, saying it undervalued the personal computer makes position.

Chip Bergh, chair of HP’s board, said the offer would leave shareholders with an investment in a combined company that is burdened with an irresponsible level of debt.

“(It) would subsequently require unrealistic, unachievable synergies that would jeopardize the entire company,” Bergh said in a statement.

He also pointed out that sales at Xerox have been declining steadily and its recent sale of stake in Fuji-Xerox joint venture raised concerns about future positions of the company.

Xerox decided to sell its 25% stake in Fuji Xerox, its joint venture with Fujifilm Holdings, for $2.3 billion in November last year, following investor activism that scuppered a deal between the two companies.

HP has decide to implement Poison pill plan to prevent hostile takeover plans. HP will be buying back shares worth 15 Billion dollar from the market to prevent the hostile takeover.

HP on Thursday requested shareholders to reject Xerox’s tender offer launched earlier this week, saying it would disproportionately benefit Xerox shareholders relative to HP shareholders.

Xerox shares fell over 4% and HP shares about 1% in early trading.