Will Xerox Shake Rank?

Analysts wonder whether Stamford (Conn.)-based Xerox Corp.'s recent announcement of a worldwide restructuring will rock Rank Organization PLC, Britain's largest leisure company. The companies are closely linked. Rank gets roughly half of its earnings from Rank Xerox Ltd., a $4.4 billion joint venture. In recent weeks, Rank's CEO, Michael B. Gifford, has indicated that he was hoping for Xerox to buy out Rank's 49% stake in Rank Xerox. This greatly excited investors. Rank's stake, which includes a holding in Fuji Xerox Co., is thought to be worth up to $2.2 billion. Now, there's doubt that a belt-tightening Xerox would go through with such a move.

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