Soon-to-be cashed-up Xerox boosts HP share price after bid talk

While it's only that part of the newsmedia industry still interested in digital newspaper printing that should care, the machinations of Xerox, Fuji Xerox and HP continue to spark attention.

This week's news is that US-based Xerox is to sell its quarter share in the Fuji Xerox joint venture, but also speculation that Xerox - presumably with some of the proceeds of the US$2.3 billion deal - might go after HP.

The sell-out to Fujifilm comes after Xerox investors Carl Icahn and Darwin Deason blocked a proposed merger between the two, and includes an agreement for Fujifilm to drop its $1 billion lawsuit over the failed merger.

Xerox will go on selling Fuji Xerox printers after the maker becomes a wholly-owned subsidiary of Fujifilm.

In a statement, Xerox said it will use the proceeds to "pursue acquisitions" as well as to pay down debt due and return money to shareholders.

Shigetaka Komori, Fujifilm's chairman and chief executive, has described the deal as "an ideal next step" for Fuji Xerox and Fujifilm. He said Fuji Xerox - which had revenue quoted at "more than a trillion yen (A$13.36 billion)" - had become a lean and strong company after a series of reforms initiated in 2018, and will be "even stronger" following the latest deal.

Yesterday, the value of HP shares rose after the Wall Street Journal reported that Xerox was thinking about bidding for it.

Both companies are players in the digital newspaper printing market, which they dominate with Kodak.

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