R.R. Donnelley Drops on Speculation Xerox Deal to Fall Throughby
R.R. Donnelley & Sons Co., the owner of the Edgar Online financial-statement wire service, dropped in New York trading on speculation that a deal to combine with a division of Xerox Corp. will fail to materialize.
Xerox’s board rejected a bid by R.R. Donnelley to merge with the Xerox copier business, preferring its own plan to split the division from its business services unit, the Wall Street Journal reported Friday, citing unidentified people familiar with the matter. Bloomberg News was first to report earlier this week that the companies were in discussions.
Sean Collins, a spokesman for Xerox, declined to comment on the Journal’s report. R.R. Donnelley spokesman Dave Gardella didn’t immediately respond to messages seeking comment.
R.R. Donnelley announced it planned to split into three publicly traded companies last year. A deal with Xerox would negate that plan, Bloomberg reported earlier, citing people familiar with the matter. Xerox and R.R. Donnelley have both seen opportunity in pursuing a merger after Hewlett Packard Enterprise Co. and Computer Sciences Corp.’s market valuations climbed following their announcement of a spin-merger in May, one of the people said.
R.R. Donnelley slid as much as 6 percent, the biggest intraday decline since May 3. Xerox dropped less than 1 percent to $9.60 at 10:08 a.m. in New York.