Wed October 25, 1:34 am Eastern Time CORRECTED-UPDATE 1-Fuji Photo mulls buying Xerox stake in
Fuji X
In TOKYO story headlined ``UPDATE 1-Fuji Photo mulls buying Xerox stake in Fuji Xerox'' please read in first paragraph....considering an
offer from Xerox Corp (NYSE:XRX - news) to sell it a 25 percent stake in Fuji Xerox Co....instead of....considering an offer from Xerox Corp
(NYSE:XRX - news) to sell it a 50 percent stake in Fuji Xerox Co....(correcting amount of stake being offered).
A corrected story follows.
(Adds company comment, details)
TOKYO, Oct 24 (Reuters) - Fuji Photo Film Co Ltd , the world's second ranked photo film maker, said on Tuesday it was considering an offer from Xerox Corp
(NYSE:XRX - news) of the United States to sell it a 25 percent stake in Fuji Xerox Co.
Fuji Photo said Xerox had also offered to sell all of its operations in China to Fuji Xerox Co.
Xerox currently owns 50 percent of Fuji Xerox, with Fuji Photo holding the remaining stake.
Fuji Xerox, a joint venture equally owned by Fuji Photo and Xerox, currently runs businesses in Japan and elsewhere in Asia, excluding China.
``We can't comment on how the negotiations with Xerox will go, as we have not yet received a detailed offer,'' said a Fuji Photo spokesman.
The news came as Xerox, the world's number one photocopier maker, announced a third-quarter net loss and unveiled a $1 billion cost-cutting plan intended to restore
profitability at the ailing copier giant.
Under the plan, Xerox outlined an ``aggressive'' turnaround programme including the cost cuts and asset dispositions that are expected to raise $2-4 billion. It said it planned
substantial job cuts, and that it was in talks to sell a range of assets, including its China operations.
In early October, U.S. fund managers said Xerox's string of earnings disappointments might finally have pushed it to the point where it would have to sell some assets and
Fuji Photo would be an obvious potential buyer.
The announcement by Fuji Photo came after the Tokyo stock market closed. Fuji Photo's shares ended 3.92 percent higher at 3,980 yen on Tuesday.
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