Copy that: Xerox splitting into 2 separate companies

NEW YORK -- Xerox is separating into two independent publicly traded companies. The planned breakup follows pressure from activist investor Carl Icahn.

See Full Article

Shares of the Norwalk, Connecticut-based company edged up in Friday premarket trading.

Xerox announced in October that it planned to conduct a review of its operations in the hopes of boosting shareholder value.

The separation calls for a document technology company and a business process outsourcing company. The document technology company will handle document management and document outsourcing, while the business process outsourcing business will help companies with automating and simplifying business processes.

The names of the two companies and their leadership teams have yet to be determined.

Xerox and Icahn reached a deal on the governance of the business process outsourcing company. Under the breakup, Icahn will get to name three of the nine directors on that company's board. A search is also going to be started for an external candidate to serve as CEO of the business. Icahn will be allowed to choose an individual to observe and advise the committee that is performing the search.

Icahn said in a written statement that he believes the independent business process outsourcing company will enhance shareholder value.

Xerox Corp. also announced a three-year plan to save $2.4 billion across all segments. It anticipates $700 million in annual savings in 2016.

Xerox said its goal is to complete the separation by the end of the year.

Its shares rose 12 cents, or 1.3 per cent, to $9.35 in premarket trading about 90 minutes before the market open.



Advertisements

Latest Economic News

  • Walmart, J.B. Hunt truck operations sign up for Tesla's all-electric Semi

    Economic CBC News
    Walmart is planning to test Tesla's electric trucks in Canada and the U.S., it said Friday, just a day after the unveiling of the all-electric Tesla Semi. The retail giant becomes the second U.S. company to commit to trying the new technology as an alternative to diesel, after J.B. Source
  • Quebec biofuel company partners with Qantas in effort to cut emissions

    Economic CBC News
    A Quebec biofuels company has signed its first deal to power an airline's jets with energy grown from Canadian oilseeds. Agrisoma Biosciences Inc. of Gatineau will supply biofuel to Australia's Qantas Airways made from Carinata seed, a non-food, industrial type of mustard seed that produces oil suitable for aviation and diesel fuel. Source
  • Bombardier to hire 1000 workers in Montreal for Global 7000 business jet

    Economic CTV News
    Bombardier confirmed this morning that it will hire about 1,000 workers over the next 18 months for its new Global 7000 business jet. The workers will complete the interiors for the company's largest business aircraft. Source
  • Bombardier hiring 1,000 to work on Global 7000 aircraft

    Economic CBC News
    Bombardier is hiring about 1,000 workers in the Montreal area to work on its Global 7000 business aircraft program, the company said Friday. The company said the workers will be hired over the next 18 months for interior completion work on the aircraft. Source
  • Teck outlines plan to spend nearly $500 million on dividends, stock buybacks

    Economic CTV News
    VANCOUVER -- Teck Resources has announced plans to issue a special dividend to its shareholders, in addition to its regular dividend, and increase its share buyback program by $230 million. The diversified mining company, based in Vancouver, says the two measures are being taken because of Teck's strong cash position. Source
  • Why aren't drivers catching a break at the pumps?

    Economic CTV News
    There may be no fact of life more confounding to ordinary Canadians than gas prices. They seem to go up at the first whisper of climbing oil prices, but don’t fall nearly as fast when barrels of oil sell for less. Source
  • Thousands more names and companies revealed from Paradise Papers

    Economic CBC News
    The public will get a glimpse at the tens of thousands of names — including those of more than 3,000 Canadians and Canadian companies — in the Paradise Papers starting today. Key information from the huge leak of tax-haven financial records, including the names of offshore companies and the people behind them, is being made public by the International Consortium of Investigative Journalists (ICIJ), the Washington-based group that co-ordinated global reporting on the documents. Source
  • Bombardier announcement LIVE

    Economic CBC News
    Air Date: Nov 17, 2017 10:00 AM ET Source
  • 'Clock is ticking': EU leaders warn broadening of Brexit talks could be in doubt

    Economic CTV News
    GOTEBORG, Sweden -- European Union leaders warned Britain Friday that it must do much more to convince them that Brexit talks should be broadened to cover future relations and trade from December. At an EU summit in Sweden, Prime Minister Theresa May's government was urged to clarify how much Britain will pay in settlement of its financial accounts with the bloc and to ensure that there is no hard border created between Ireland and Northern Ireland. Source
  • Qantas signs long-term deal to power its jets with Canadian oilseeds

    Economic CTV News
    MONTREAL -- A Quebec biofuels company has signed its first deal to power an airline's jets with energy grown from Canadian oilseeds. Agrisoma Biosciences Inc. of Gatineau will supply biofuel to Australia's Qantas Airways made from Carinata seed, a non-food, industrial type of mustard seed that produces oil suitable for aviation and diesel fuel. Source