Xerox rejects RR Donnelley merger proposal
Document business announced its intention in January to split in two
Xerox Corp. has turned down a bid from RR Donnelley and Sons to merge after its January announcement that it intends to split the company.
Earlier this year the company revealed plans to divide its business out-sourcing operations and printer/copier operations. Interest has arrived from plenty of sources to take over one, or both of the sections, according to Marketwatch sources.
RR Donnelley is in a similar process of dividing its two major parts, and had flirted with the idea of combining its operations with that of the Xerox's copier business.
The Xerox board reviewed the proposal with its advisors before informing RR Donnelley on Thursday that it wasn’t interested — believing its own plan is less risky, the sources revealed.
Xerox only acquired its services business a mere 5 years ago, but took the decision to safeguard its interests in a rapidly changing marketplace.
The board decided that the document and service operations had little overlap and require different capital structures and operating models, according to Xerox.