Xerox will retain a 25 percent stake in Fuji Xerox, a joint venture through which it sells its products in Asia, primarily Japan. The agreement means Xerox will lose half its profits from the joint venture. The agreement marks the largest asset sale the company has made, said Anne Mulcahy, president and chief operating officer. Despite becoming a minority stakeholder in Fuji Xerox, both companies retain uninterrupted access to each other's patents, technology and products, Xerox officials said. The companies said Cincinnati-based Convergys, which handles customer service, telemarketing calls and technical support for corporations, would issue 17.6 million Convergys shares to Geneva shareholders.
Geneva makes billing software for telecommunications providers, utilities and online markets.
The deal is expected to add to Convergys' revenues immediately but would cut into profits per share in 2001 and 2002. The acquisition could begin boosting Convergys' earnings in 2003, the companies said. The expanded TV networks group will share advertising, marketing, program development and Internet resources. Jamie Kellner, the chief executive and founder of the WB network, has been named chairman and chief executive of Turner Broadcasting. Terence McGuirk, who has been chairman and CEO of Turner Broadcasting will become vice chairman.