Xerox’s New Strategy: Sell More Stock, Hope for the Best, and Maybe Get Rid of Debt?

Oh, look! Xerox, the company that’s been totally on the cutting edge of innovation in the 21st century, is now on a bold new quest to enhance shareholder value—with warrants, no less. Because who wouldn’t want to own a piece of the paper-copying behemoth with a sprinkle of corporate debt reduction? And why stop there? These “pro-rata warrants,” which will be distributed to shareholders in proportion to their existing holdings, will surely solve all their debt problems! After all, if you can’t innovate your way out of a financial hole, why not just issue a few shiny new pieces of paper and hope for the best? The company is hoping to raise a bit of cash by diluting the stock further, with the ultimate goal of reducing their $4.9 billion debt load. Surely, that’ll make everything right again—because nothing says “modern business strategy” quite like a warrant.