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Business Briefs

Reported by Star-Bulletin staff & wire

Friday, September 15, 2000

Xerox shares rise on deal speculation

STAMFORD, Conn. -- Xerox Corp., the world's largest copier maker, rose 12 percent on speculation that the company may be a takeover target for rivals Canon Inc. or Hewlett-Packard Co.

The shares rose $2 to $18.25 today on the New York Stock Exchange. Business Week reported, without citing sources, that Xerox talked with HP, Japan's Canon and investor group Silverlake Partners about being acquired.

"We don't comment on rumor or speculation," said Bill McKee, a spokesman for Stamford, Conn.-based Xerox. The company lost about two-thirds of its value in the past year following a botched sales force reorganization and because of increased competition. Some investors have said Xerox should consider management changes and even breaking up the company to speed a turnaround.

Oracle profits beat Wall St. expectations

SAN FRANCISCO -- First-quarter profits at Oracle Corp. more than doubled, helped by strong demand for its database software, as the company shook off the departure of its second-ranking executive.

The Redwood Shores-based Oracle said late yesterday said it earned $501 million, or 17 cents per share, for the three months ended Aug. 31, up from $237 million, or 8 cents per share, in the year-ago period. The results from both quarters include investment gains and losses. Analysts polled by First Call/Thomson Financial forecast earnings of 13 cents a share.

Ford scraps bid to purchase Daewoo

SEOUL -- Ford Motor Co. scrapped its $7 billion bid to buy Daewoo Motor Co., dealing a blow to Korea's efforts to sell debt-laden companies and setting back efforts by the world's second-biggest automaker to expand in Asia. Ford could not make an offer that was "financially prudent" after going through the books of Korea's second-largest carmaker, said Meera Kumar, Ford's spokeswoman in Seoul. Ford tried to exclude assets including Daewoo Capital, a finance company, its Ssangyong Motors unit and other assets, Korean newspapers said. Daewoo Motor is now unlikely to fetch the $7 billion Ford initially bid, Bloomberg News reported. General Motors Corp., beaten by Ford in the first round said in a statement it is still interested in Daewoo.