George T. Conboy’s Cow and Chicken Theory describes our markets best: no matter what’s happening, in the morning the farmer goes to the barn. The cow still gives milk and the chicken lays their eggs. Despite all the chaos from the election, deals are still happening. Furthermore, the Xerox and Conduent deal will be coming to close within the next sixty days. According to the Democrat and Chronicle on November 8th, Xerox announced the details on their upcoming split into two separate companies.
Although internal operations between the legacy technology company Xerox and the new services company Conduent are already beginning to be separated, the split will be finalized on December 31st. Common stock shareholders of Xerox (XRX) stock will receive one share of Conduent (CNDT) for every five shares of Xerox (XRX) stock owned as of December 15th, 2016.
What does this mean for current XRX shareholders and Rochester, NY? In regard to the stock, the corporation reports that no action is required by current shareholders and distribution details are forthcoming.
Yet, while this could create some opportunity and potential for improved XRX and CNDT fundamentals and operational efficiencies, it could also mean more voluntary/involuntary retirement packages for local XRX employees and downsizing efforts. Only time will tell.
Working with a financial advisor like myself, a former Xerox employee, who knows and understands the Xerox business and retirement plan is extraordinary beneficial. Our firm has provided financial advice and thorough reviews of the 401k plan, RIGP, and retirement benefits to many Xerox retirees and pre-retirees.
Working to create a customized roadmap for your retirement not only increases the chance of living the life you want but delivers the most valuable intangible benefit: peace of mind.
Caroline Hill, Financial Advisor
(This article contains the current opinions of the author but not necessarily those of Brighton Securities Corp. The author’s opinions are subject to change without notice. This blog post is for informational purposes only. Forecasts, estimates, and certain information contained herein should not be considered as investment advice or a recommendation of any particular security, strategy or investment product. References to specific securities and their issuers are for illustrative purposes only and are not intended and should not be interpreted as recommendations to purchase or sell such securities).