Xerox (XRX) Stock Up After Rejecting R.R. Donnelley Merger

Xerox (XRX) privately rejected a merger with R.R. Donnelley as it works to split into two separate businesses by year end.
By Natalie Walters ,

NEW YORK (TheStreet) -- Shares of Xerox (XRX) - Get Report are up by 0.26% to $9.68 on Friday afternoon, as the company privately rejected a bid to merge with R.R. Donnelley (RRD) on Thursday, after reviewing the proposal with its advisers. 

The Norwalk, CT-based document and printing services company has been attracting potential deals ever since announcing in January that it would separate into two companies by the end of 2016: a document technology company and a business process outsourcing company, the Wall Street Journal reports. 

The company predicted the split into a hardware and services firm would save $2.4 billion over the first three years, the Wall Street Journal said. R.R. Donnelley, which also provides printing and related services, is also splitting up and wanted to merge with Xerox's remaining services firm.

Xerox named new chief executives for both of its companies in June, as it works to separate the businesses by year end. 

Separately, 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. TheStreet Ratings has this to say about the recommendation:

We rate XEROX CORP as a Hold with a ratings score of C. The primary factors that have impacted our rating are mixed - some indicating strength, some showing weaknesses, with little evidence to justify the expectation of either a positive or negative performance for this stock relative to most other stocks. 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, as a counter to these strengths, we also find 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

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