Lexmark Hires Goldman Sachs to Explore Strategic Optionsby
Lexmark International Inc. hired Goldman Sachs Group Inc. to explore strategic alternatives after the computer-printer maker’s stock had dropped 20 percent for the year.
No timetable has been set and there is no assurance that the move will result in a transaction, the Lexington, Kentucky-based company said in a statement Friday.
“While the board is encouraged by the company’s future prospects, the board does not believe Lexmark’s current share price fully reflects the intrinsic value created by the company,” Jean-Paul Montupet, the company’s lead director, said in the statement.
Lexmark has struggled to expand amid lower demand for its products. The company in July reported a 1.4 percent drop in second-quarter revenue to $879.3 million, missing analysts’ estimates of $901 million.
The stock rose 7.2 percent to $35.25 at the close in New York, marking its sharpest gain in a year and giving the company a market value of $2.2 billion. The shares had been down 20 percent through Thursday’s close.