STAMFORD, Conn. (AP) — Xerox Corp. denied a report in Tuesday's New York Post that it had hired an investment firm as a bankruptcy adviser. <br><br>The struggling office machines maker acknowledged
Tuesday, January 9th 2001, 12:00 am
By: News On 6
STAMFORD, Conn. (AP) — Xerox Corp. denied a report in Tuesday's New York Post that it had hired an investment firm as a bankruptcy adviser.
The struggling office machines maker acknowledged it had hired the Blackstone Group, a New York-based investment firm, as a financial adviser. But Xerox said it has no plans to file for bankruptcy court protection.
``We have $1.4 billion in cash on hand and we believe our liquidity remains sufficient to meet our current and anticipated needs,'' said Xerox spokesman Bill McKee.
The Post quoted sources it did not identify as saying Xerox had retained Art Newman, head of Blackstone's bankruptcy practice.
McKee said the company would not disclose any details about its contract with Blackstone, including whether Newman had been retained.
``We work with a number of consultants on a regular basis and seek their advice in a range of activities and we do not discuss those business activities,'' McKee said.
Xerox has been struggling for more than a year with increased competition, slow sales of its copiers and a stock price that has plunged nearly 80 percent from its 52-week high. Shares of Xerox were down 37.5 cents to $6 in trading on the New York Stock Exchange.
The company warned last month that it expects a drop in its fourth-quarter earnings, but did not say how steep the decline would be.
The company is in the midst of a major restructuring, including the sales of between $2 billion and $4 billion in assets and a $1 billion cost-reduction program. Last month, it sold its China operations to Fuji Xerox Co. Ltd. for $550 million.
New York-based analyst Peter Enderlin of Ryan, Beck & Co., said he believes the company can still turn things around.
``Clearly, the program is to sell off some more noncore assets,'' said Enderlin. ``They have a lot of very strong products, a very good brand name, a very extensive worldwide sales and service organization and a lot of assets that they can sell or deploy to improve their financial position.''
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