Deutsche Bank's Xerox Deal Placed On Hold
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, Barry Romeril, did not return calls. Kevin McKee, spokesman for Xerox, declined to comment. Officials at Deutsche Bank declined to comment.
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.