KODAK TAKEOVER SPECULATION OF XEROX CORP

[Anonymous]

Xerox options trade surges on takeover speculation
January 
2007;CHICAGO – Xerox Corp. options trading surged on Monday as trader
speculation spread that Eastman Kodak Co.could acquire the printer
maker, options analysts said.Analysts downplayed the speculation,
noting that such a transaction is unlikely to occur because film maker
Kodak is less than half the size of Xerox by market capitalization and
is in the midst of a restructuring following years of turmoil in its
business.Xerox spokeswoman Christa Carone declined comment, saying the
company would not respond to rumors and speculation. Kodak had a
similar response.Xerox shares have a market value of about $16 billion,
more than twice Kodak’s market capitalization of about $7 billion.”I
don’t see Xerox getting bought out,” said Paul Foster, an options
analyst with Chicago-based theflyonthewall.com who reported the rumor
on the financial news Web site on Monday. “But I reported it because
that was the chatter on trading desks this morning.”Some 23,000 Xerox
options had changed hands as of Monday afternoon. That is more than 21
times the average daily volume over the past month, according to market
research firm Track Data.”We do see an interest in Xerox call options
today. There are rumors of a possible takeover,” said independent
options trader Robert Leone at the Chicago Board Options Exchange. “But
this is not the first time that Xerox has been mentioned as a takeover
candidate.”Stamford, Connecticut-based Xerox shares rose 30 cents, or
1.8 percent, to $17.03 in late afternoon trade on the New York Stock
Exchange. Eastman Kodak shares fell 15 cents, or 0.6 percent, to $25.48.

[Author]

January 11, 2007 at 1:29 PM