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British conglomerate might divest interest in Rank Xerox

Xerox Corp. still is interested in buying the 20 percent stake the Rank Organisation PLC holds in Rank Xerox Ltd., Xerox’s European subsidiary–providing Rank wants to sell, a Xerox spokesman said today.
London-based Rank, an entertainment conglomerate, is scheduled Thursday to release its financials for the first six months of 1996. At the same time, the company reportedly will unveil a strategy to divest assets unrelated to its core business.
The London press is speculating this divestiture could include Rank’s remaining assets in Rank Xerox, estimated to be worth more than 1 billion pounds.
In February 1995, Xerox bought roughly 40 percent of the European unit from Rank for $972 million. Xerox now holds an 80 percent piece of Rank Xerox.
Xerox has had a long-standing interest in acquiring more of Rank Xerox, spokesman Jeffrey Simek said. But he has no word that Rank intends to sell.
Simek pointed to an article in Sunday’s London Times, reporting that Rank was able to avoid paying a capital gains tax on last year’s sale as long as it held its remaining 20 percent stake for six years. If true, Simek said, that might be a compelling reason for Rank not to unload its Rank Xerox assets.

British conglomerate might divest interest in Rank Xerox

Xerox Corp. still is interested in buying the 20 percent stake the Rank Organisation PLC holds in Rank Xerox Ltd., Xerox’s European subsidiary–providing Rank wants to sell, a Xerox spokesman said today.
London-based Rank, an entertainment conglomerate, is scheduled Thursday to release its financials for the first six months of 1996.

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