Xerox has dismissed reports that it's planning to merge with the world's largest print group, RR Donnelley.
US financial news site Bloomberg.com last week reported that “people with knowledge in the matter” said talks were in the early stages but "a deal could be signed before Xerox completes its planned split into two companies later this year."
R.R. Donnelley last year announced it planned to split into three publicly traded companies, and earlier this year Xerox said it would split into two companies, one focused on document technology and the other on business process outsourcing.
“Xerox would acquire R.R. Donnelley, founded in 1864 and based in Chicago, and merge some of it with its copier, printer and related-services business and the rest with its smaller business process outsourcing services," according to the Bloomberg report.
Now, rival financial news organisation The Wall Street Journal - quoting "people familiar with the matter" - reports that Xerox Corp has "privately rejected a bid to merge its document business with Donnelley.
"R.R. Donnelley, which is also in the process of breaking up, expressed interest in putting its operations together with Xerox’s remaining copier business," said the WSJ.
"The proposal called for a deal that would have been structured as a so-called Morris Trust, a tax-efficient set-up in which Xerox would get a slight premium, one person said. "The R.R. Donnelley proposal called for its executives to take control, and for several hundred million dollars in new cost cuts.
"The Xerox board reviewed the proposal with its advisers before telling R.R. Donnelley Thursday it wasn’t interested—believing its own plan is less risky," said the report.