{"id":34500,"date":"2019-05-23T10:57:37","date_gmt":"2019-05-23T17:57:37","guid":{"rendered":"https:\/\/www.enxmag.com\/twii\/?p=34500"},"modified":"2019-05-23T10:57:40","modified_gmt":"2019-05-23T17:57:40","slug":"xerox-continues-its-evolution-with-creation-of-holding-company","status":"publish","type":"post","link":"http:\/\/www.enxmag.com\/twii\/the-week-in-imaging-twii\/editors-blog\/2019\/05\/xerox-continues-its-evolution-with-creation-of-holding-company\/","title":{"rendered":"Xerox Continues its Evolution with Creation of Holding Company"},"content":{"rendered":"\n
\"\"<\/figure><\/div>\n\n\n\n

Piece\nby piece, the future of Xerox Corp. continues to take shape. This week, the\ncompany announced that shareholders approved its proposal to adopt\nthe merger agreement pursuant to which Xerox expects\nto implement a holding company reorganization.<\/p>\n\n\n\n

Holders\nof approximately 99.7 percent of common shares present and voting at Xerox\u2019s\nannual meeting, representing approximately 77.0 percent of the company\u2019s total\noutstanding common shares, voted in favor of the proposal. The final voting\nresults for the annual meeting will be reported in a Form 8-K that Xerox will\nfile with the Securities and Exchange Commission.<\/p>\n\n\n\n

The\nclosing of the holding company reorganization remains subject to the satisfaction\nof customary conditions, including, without limitation, receipt of approval\nfrom the Financial Conduct Authority of the United Kingdom. Xerox is targeting\nthe third quarter of 2019 for the closing of the holding company\nreorganization; however, there can be no assurance regarding completion of the\nreorganization or timing of regulatory approvals, which could delay the\nclosing.<\/p>\n\n\n\n

Post-closing,\nits common stock will trade on the New York Stock Exchange under Xerox\u2019s\ncurrent trading symbol, \u201cXRX.\u201d In addition, to eliminate duplicative\nadministrative requirements and costs, Xerox has notified NYSE Chicago that it\nintends to voluntarily delist Xerox common stock from trading on NYSE Chicago\nimmediately prior to completion of the holding company reorganization.<\/p>\n\n\n\n

Holding Company Benefits<\/strong><\/p>\n\n\n\n

By\nimplementing a holding company structure, Xerox can reap certain benefits,\nincluding lowering its tax bill, protect its patents and more effectively\ndiversify its unit\u2019s businesses.<\/p>\n\n\n\n

While\nthere has been no movement on the Fuji Xerox front, Xerox continues taking\nmeasures to right its ship. According to the Connecticut Post<\/em>, Xerox eliminated 400 jobs in the first quarter of\n2019, while leaving approximately 1,100 positions unfilled as a result of\nemployee attrition.<\/p>\n\n\n\n

According to\nthe Post<\/em>, Xerox\npaid out $24 million in severance between January and March, plus paid $12\nmillion to cancel existing leases. The company has another $74 million in\nrestructuring charges budgeted for the coming 12 months.<\/p>\n\n\n\n

In\nits most recent quarterly report, Xerox reported that equipment sales were down\n10.2%. Virtually all of its MFP placements were down, with the exception of\nentry-level color MFP placements, which rose 10%. <\/p>\n\n\n\n

Stock Values Versus Operations<\/strong><\/p>\n\n\n\n

Xerox\ndid exceed its profit estimates and rolled out various initiatives improve its\nbusiness, including its Project Own It campaign and bringing Global Imaging\nSystems under the Xerox Business Solutions flag. While the situation looks\nimproved from an investor point of view, how it will shake out\noperationally\u2014including the ongoing saga with Fuji Xerox\u2014remains to be seen.<\/p>\n\n\n\n

\u201cWe\noptimized our workforce, and while we don\u2019t ever want to minimize the risk of\ndisruption that\u2019s created by all these changes, … in each case we made these\nchanges because we know what\u2019s best for Xerox in the long-term,\u201d the Post<\/em> reported Bill Osbourn Jr., chief\nfinancial officer of Xerox, as telling investment analysts in a conference call.\n\u201cI personally met with over 300 of our managers, and I can tell you that while\nthere was some disruption, they are all excited about the future because we are\ninvesting in the long-term.\u201d<\/p>\n\n\n\n

The venerable\nmanufacturer is still reconciling its legal woes. Earlier this year, a New York\nfederal judge rejected Xerox\u2019s bid to dismiss the $1 billion suit filed by\nFujifilm Holdings in the wake of Xerox nixing the proposed $6.1 billion merger.\nThe judge called Xerox\u2019s arguments \u201cplainly wrong\u201d and \u201cthoroughly\nunpersuasive.\u201d<\/p>\n","protected":false},"excerpt":{"rendered":"

Piece by piece, the future of Xerox Corp. continues to take shape. This week, the company announced that shareholders approved its proposal to adopt the merger agreement pursuant to which Xerox expects to implement a holding company reorganization. Holders of approximately 99.7 percent of common shares present and voting at Xerox\u2019s annual meeting, representing approximately 77.0 percent of the company\u2019s total outstanding common shares, voted in favor of the proposal. The final voting results for the annual meeting will be reported in a Form 8-K that Xerox will file with the Securities and Exchange Commission. The closing of the holding company reorganization remains subject to the satisfaction of customary conditions, including, without limitation, receipt of approval from the Financial Conduct Authority of the United Kingdom. Xerox is targeting the third quarter of 2019 for the closing of the holding company reorganization; however, there can be no assurance regarding completion of the reorganization or timing of regulatory approvals, which could delay the closing. Post-closing, its common stock will trade on the New York Stock Exchange under Xerox\u2019s current trading symbol, \u201cXRX.\u201d In addition, to eliminate duplicative administrative requirements and costs, Xerox has notified NYSE Chicago that it intends to voluntarily delist Xerox common stock from trading on NYSE Chicago immediately prior to completion of the holding company reorganization. Holding Company Benefits By implementing a holding company structure, Xerox can reap certain benefits, including lowering its tax bill, protect its patents and more effectively diversify its unit\u2019s businesses. While there has been no movement on the Fuji Xerox front, Xerox continues taking measures to right its ship. According to the Connecticut Post, Xerox eliminated 400 jobs in the first quarter of 2019, while leaving approximately 1,100 positions unfilled as a result of employee attrition. According to the Post, Xerox paid out $24 million in severance between January and March, plus paid $12 million to cancel existing leases. The company has another $74 million in restructuring charges budgeted for the coming 12 months. In its most recent quarterly report, Xerox reported that equipment sales were down 10.2%. Virtually all of its MFP placements were down, with the exception of entry-level color MFP placements, which rose 10%. Stock Values Versus Operations Xerox did exceed its profit estimates and rolled out various initiatives improve its business, including its Project Own It campaign and bringing Global Imaging Systems under the Xerox Business Solutions flag. While the situation looks improved from an investor point of view, how it will shake out operationally\u2014including the ongoing saga with Fuji Xerox\u2014remains to be seen. \u201cWe optimized our workforce, and while we don\u2019t ever want to minimize the risk of disruption that\u2019s created by all these changes, … in each case we made these changes because we know what\u2019s best for Xerox in the long-term,\u201d the Post reported Bill Osbourn Jr., chief financial officer of Xerox, as telling investment analysts in a conference call. \u201cI personally met with over 300 of our managers, and I can tell you that while there was some disruption, they are all excited about the future because we are investing in the long-term.\u201d The venerable manufacturer is still reconciling its legal woes. Earlier this year, a New York federal judge rejected Xerox\u2019s bid to dismiss the $1 billion suit filed by Fujifilm Holdings in the wake of Xerox nixing the proposed $6.1 billion merger. The judge called Xerox\u2019s arguments \u201cplainly wrong\u201d and \u201cthoroughly unpersuasive.\u201d<\/p>\n","protected":false},"author":166,"featured_media":22505,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":[],"categories":[80,1650,82,1638],"tags":[362],"_links":{"self":[{"href":"http:\/\/www.enxmag.com\/twii\/wp-json\/wp\/v2\/posts\/34500"}],"collection":[{"href":"http:\/\/www.enxmag.com\/twii\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"http:\/\/www.enxmag.com\/twii\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"http:\/\/www.enxmag.com\/twii\/wp-json\/wp\/v2\/users\/166"}],"replies":[{"embeddable":true,"href":"http:\/\/www.enxmag.com\/twii\/wp-json\/wp\/v2\/comments?post=34500"}],"version-history":[{"count":1,"href":"http:\/\/www.enxmag.com\/twii\/wp-json\/wp\/v2\/posts\/34500\/revisions"}],"predecessor-version":[{"id":34501,"href":"http:\/\/www.enxmag.com\/twii\/wp-json\/wp\/v2\/posts\/34500\/revisions\/34501"}],"wp:featuredmedia":[{"embeddable":true,"href":"http:\/\/www.enxmag.com\/twii\/wp-json\/wp\/v2\/media\/22505"}],"wp:attachment":[{"href":"http:\/\/www.enxmag.com\/twii\/wp-json\/wp\/v2\/media?parent=34500"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"http:\/\/www.enxmag.com\/twii\/wp-json\/wp\/v2\/categories?post=34500"},{"taxonomy":"post_tag","embeddable":true,"href":"http:\/\/www.enxmag.com\/twii\/wp-json\/wp\/v2\/tags?post=34500"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}