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.


Latest Economic News

  • Tickets without barcodes: Concert venues experiment with new systems

    Economic CBC News
    When fans score tickets for events at the Burton Cummings Theatre in Winnipeg in the future, they might notice the absence of a familiar feature: that ubiquitous zebra-styled inventory tracker bar that adorns almost every retail product imaginable. Source
  • The dirty truth about makeup and the oil change debate: CBC's Marketplace consumer cheat sheet

    Economic CBC News
    Miss something this week? Don't panic. CBC's Marketplace rounds up the consumer and health news you need. Want this in your inbox? Get the Marketplace newsletter every Friday. Internet prices dialing up Your internet bill could get even more pricey. Source
  • After overcharging for bread, should Loblaws demand ID for a $25 gift card?

    Economic CBC News
    Jenn Iskiw says she'll be grocery shopping elsewhere after feeling betrayed by Loblaws — twice. First, for artificially inflating the price of bread for 14 years, and second, for demanding she send ID to get a $25 gift card offered as compensation for bread price fixing. Source
  • Facebook suspends data analytics firm that worked for Trump campaign

    Economic CBC News
    The Massachusetts attorney general said on Saturday her office was launching an investigation after reports that Cambridge Analytica had harvested private information from more than 50 million Facebook users in developing techniques to support U.S. President Donald Trump's 2016 election campaign. Source
  • Trump's goal of 'energy dominance' could change the global balance of power

    Economic CBC News
    Fuelled by technological breakthroughs and cuts to taxes and regulation, the United States is on target to become the world's biggest producer of crude oil in the next five years. Let that sink in. The U.S will be bigger than Russia and Saudi Arabia. Source
  • How to avoid spending money on unnecessary oil changes

    Economic CBC News
    Oil changes are by far the most common service performed on vehicles in Canada. Customers pay quick lube facilities, private garages and dealer maintenance centres well over a billion dollars a year for the service. But a CBC investigation finds many of us may be changing our oil far more often than automakers require. Source
  • Trans Mountain protester arrested, one day after court grants injunction

    Economic CTV News
    BURNABY, B.C. -- Burnaby RCMP say they arrested a woman who chained herself to a work truck Friday morning, one day after the B.C. Supreme Court granted Trans Mountain an injunction against demonstrators. Just before 8 a.m. Source
  • Enbridge, TransCanada shares flat after steep dive due to U.S. tax ruling

    Economic CTV News
    CALGARY -- Shares in Canadian pipeline companies Enbridge Inc. and TransCanada Corp. failed to recover fully Friday from a steep sell-off on Thursday after the U.S. said it would eliminate a tax break for owners of certain interstate pipelines. Source
  • WestJet union drive helped by unhappiness with pay formula, says flight attendant

    Economic CTV News
    MONTREAL -- A WestJet flight attendant says rules that effectively pay starting workers less than minimum wage because they're compensated only for time in the air is helping shore up support for a union drive at Canada's second-largest airline. Source
  • Sask. premier blasts 'mind-boggling' rail backlog of grain shipments

    Economic CTV News
    REGINA -- Saskatchewan Premier Scott Moe says it's mind-boggling that grain shipments have been delayed again by rail backlogs this year. Moe told the Saskatchewan Association of Rural Municipalities on Friday that this is the second time in four years that grain shipments have been delayed. Source