Xerox Corp.’s decision to split into two public companies was the top local business story of 2016, Rochester Business Journal readers and staff agreed.
Xerox Corp. on Tuesday reported the completion its separation of Conduent Inc., creating two publicly traded companies.
The news, along with stock upgrades, resulted in a nearly 16 percent increase in Xerox’s stock price. Shares of Xerox (NYSE: XRX) were trading midday at $6.65, up from Friday’s close of $5.75, adjusted post-split.
In Monroe County, Xerox employs some 5,500 workers; Conduent has slightly more than 600 local employees.
Credit Suisse Group AG Tuesday upgraded Xerox stock to outperform from neutral; JP Morgan Chase & Co. upgraded the business to overweight from neutral.
“Today is an historic day for Xerox,” CEO Jeff Jacobson said in a statement. “The successful completion of the separation sharpens our market focus and commitment to our customers.”
Under the terms of the separation, on the distribution date of Dec. 31, Xerox shareholders received one share of Conduent common stock for every five shares of Xerox common stock they held as of the close of business on Dec. 15.
In connection with the spinoff, Xerox received a cash transfer from Conduent of $1.8 billion, which it intends to use, along with cash on hand, to retire approximately $2 billion in debt, Xerox said.
Members of the company’s executive leadership team, employees and customers are to ring the opening bell at the New York Stock Exchange on Wednesday.
Conduent shares (NYSE: CNDT) were down roughly 6 percent at $14.01 in early afternoon trading. CEO Ashok Vemuri rang the opening bell of the New York Stock Exchange on Tuesday.
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