I'm wondering the way Xerox has been going - stuck on a downward trajectory for so long - is it possible that we could be looking at bankruptcy sometime down the line?
I don't think it's going to happen this year, but I'm more and more convinced that it is inevitable to happen at some point.
Xerox still has solid cash flow and with the recently significantly reduced expenses, i.e. us the employees, the bottom-line numbers look OK for the short term.
The first major hurdle will be when the Xerox’s largest debt offering comes due in 2021. If sales begin to slump before 2021 due to lack of R but the laws in those countries place the pension plans as primary creditors in cases of bankruptcy, i.e. the debts of the pension plan are met before others, including private investors.
Concur with other responses. Xerox is a very healthy company that returns close to $1B in cash on approx. $10B in revenue, and always has healthy dividends. Office print is a slow decline that could be offset by other offerings.
Icahn's position is reflective of his ability to spot mismanaged companies that he can manipulate.
Are you serious? Xerox has great cash flow, and also regular but flattening profit, and is able to pay a dividend to shareholders that equates to >3 percent at current stock price. There are valuable parts of business they could liquidate that would generate more than enough cash to stave off any severe financial distress.
Company seems to be at no risk of bankruptcy (with no respect for the turmoil in employees). Prospective breakup could happen after the XRX stock becomes a holding company targeted for mid year. My guess is it is a wait and see until holding company is approved, and then the breakup and monetization of assets would probably begin then.
Not for a while, Carl would saddle Xerox with a bunch of debt first.