Bankers said Deutsche Bank's planned $500 million
credit for Xerox is currently on hold following the company's
latest $1 billion financing agreement with
GE Capital. Deutsche
Bank was expected to bring the credit to market this month in an
effort to provide the company with added liquidity to the $2
billion in cash the company has on hand. Market sources said
Deutsche Bank is sitting on its commitment as the company
determines whether or not it will need the additional capital.
"This has nothing to do with the events of Sept. 11," one banker
clarified. Xerox CFO,
Romeril, did not return calls.
Kevin McKee, spokesman
for Xerox, declined to comment. Officials at Deutsche Bank declined
The bank deal has reportedly been shelved due to
the company's latest deal, announced two weeks ago, with GE
Capital, whereby GE Capital will act as a third-party financing
partner enabling the company to remove as much as $10 billion from
its balance sheet over the next few months. "Right now they're
focusing on the other arrangement," said a banker close to the
deal. GE Capital has agreed to provide the company with roughly $1
billion in secured financing.