Will Xerox (XRX) Stock Climb on Potential RR Donnelley Deal?
NEW YORK (TheStreet) -- Xerox (XRX) - Get Report is in talks to acquire RR Donnelley & Sons (RRD), Bloomberg reports.
Although there are still significant issues to negotiate as Bloomberg reports, both companies have recently announced plans to split some of their units into individual entities.
In January, Xerox announced plans to split into two: a document technology company with an annual revenue of $11 billion and a business process outsourcing company with $7 billion in revenue. The company is on track to complete the split by year end.
RR Donnelley announced last year that it would split into three separate publicly traded companies.
Xerox stock closed down 0.42% to $9.50 yesterday. This morning, shares of RR Donnelley are surging 7.91% to $19.91 in premarket trade.
Xerox, based in Norwalk, CT, is a business services company best known for its photocopying technology and RR Donnelley is a financial printing firm based in Chicago.
Separately, TheStreet Ratings rated this stock as a "hold" with a ratings score of C.
The company's strengths can be seen in multiple areas, such as its largely solid financial position with reasonable debt levels by most measures and expanding profit margins.
However, TheStreet Ratings also finds weaknesses including a generally disappointing performance in the stock itself, deteriorating net income and disappointing return on equity.
You can view the full analysis from the report here: XRX
Recently, TheStreet Ratings objectively rated this stock according to its "risk-adjusted" total return prospect over a 12-month investment horizon. Not based on the news in any given day, the rating may differ from Jim Cramer's view or that of this articles's author.