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News Breaks
May 9, 2014
17:18 EDTXRXXerox issues statement on Texas lawsuit and dismissal
The company said, "The lawsuit filed today by the Texas Attorney General's office regarding Xerox's performance administering the state's Medicaid orthodontic program is misdirected. Xerox will defend itself vigorously. We are also disappointed with the HHSC decision to replace Xerox as Medicaid provider. It has always been and continues to be our objective to reach a resolution with HHSC and the state on their concerns, and hopefully we can find a path forward to attain a reasonable result to address our differences. While we're disappointed in this development, Xerox will continue to serve disadvantaged and underserved Medicaid beneficiaries in Texas during the transition. The Medicaid orthodontia program provides disadvantaged children with access to critical orthodontia procedures – such as braces – because their families are not in a position to provide this care. Unfortunately, this misdirected lawsuit focuses on Xerox rather than on the dentists who took advantage of the program. We have never engaged in fraudulent activity and always operated with complete transparency. Xerox, under its Texas Medicaid & Healthcare Partnership, has always performed its work in good faith. Moreover, the entire program Xerox implemented was designed by HHSC. Xerox received HHSC approval on each of its processes and Xerox also provided monthly reports to HHSC from the beginning of the program and continues to do so today. Xerox has always collaborated with HHSC to ensure the integrity of the state's Medicaid system since the contract was first awarded in 2003, then re-awarded in 2010 and extended in 2012. While we are certainly disappointed HHSC has filed suit, we're committed to a smooth transition of responsibilities to ensure no disruption of services to Medicaid beneficiaries and the providers who care for them."
News For XRX From The Last 14 Days
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October 16, 2014
10:01 EDTXRXAllegion selects Xerox in five-year agreement
Allegion (ALLE) selected Xerox (XRX) to support the company’s IT infrastructure as part of a five-year agreement. Xerox will support Allegion’s infrastructure by managing IT services.
October 14, 2014
11:20 EDTXRXXerox upgraded to Buy from Hold at Standpoint Research
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October 6, 2014
11:02 EDTXRXHP rises as split viewed as potential prelude to deals
Shares of HP (HPQ) are climbing after the company announced that it would split itself into two publicly traded companies. Analysts were mostly upbeat on the news and tech news website Re/code said that the two companies would be "in deal-making mode" following the split. WHAT'S NEW: HP this morning said it would split itself into two companies by the end of its fiscal 2015. One company will include HP's technology infrastructure, software and services businesses, to be known as "Hewlett-Packard Enterprise," while the other will include the company's PC and printing businesses and be called "HP Inc." Meg Whitman, who is currently the CEO of HP, will become CEO of Hewlett-Packard Enterprise and chairman of HP, Inc. ANALYST REACTION: Shareholders will likely view the move positively, as limited synergies exist between HP's enterprise business and its PC and printing business, Deutsche Bank analyst Sherri Scribner wrote. Moreover, the forward price to earnings ratio of the enterprises unit, whose margins are set to expand, are more likely to reach close to 11x following a split, in-line with the multiple of Xerox (XRX) and CSC (CSC), the analyst contended. Noting that HP remains one of the cheapest names in the S&P 500, Scribner kept a $40 price target and Buy rating on the shares. The split is "a bold and smart move" by HP that will give it the financial flexibility needed to sell off one or both of the PC and printing businesses, wrote Cantor analyst Brian White. The shareholders of EMC (EMC), which reportedly had been in discussions about merging with HP, would have difficulty accepting HP's printer and PC business, according to White. The analyst raised his price target on HP to $39 from $34.50 but kept a Hold rating on the stock. WHAT'S NOTABLE: Both Hewlett-Packard Enterprise and HP Inc. will "be in deal-making mode" after the split, Re/code stated. HP Inc. is likely to draw attention from both Dell and China's Lenovo (LNVGY), which were both approached by HP about a possible deal over the last year, the website stated. Meanwhile, Hewlett-Packard Enterprise could restart dormant merger talks with EMC, while Dell and Cisco (CSCO) could emerge as bidders and offer shareholders of both Hewlett-Packard Enterprise and EMC better terms, Re/code stated. However, Cisco has carried out a more conservative M&A strategy lately, while its CEO, John Chambers, who is preparing to retire soon, said the company would not be interested in buying EMC, Re/code noted. PRICE ACTION: In mid-morning trading, HP jumped 4.6% to $36.83, while shares of EMC were down fractionally.

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