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XEROX FINANCIAL SERVICES COMPLETES SALE OF FURMAN SELZ HOLDING CORPORATION

 STAMFORD, Conn., Oct. 25 /PRNewswire/ -- Xerox Financial Services today completed the sale of New York-based Furman Selz Holding Corporation to a group of Furman Selz employees.
 The purchase price was $99 million in cash and junior subordinated debt. As previously indicated when the letter of intent was announced July 28, Xerox will use the cash generated by the sale to pay off debt.
 As part of the transaction, an affiliate of Xerox Financial Services acquired nine percent of the equity in the newly constituted Furman Selz.
 The $99 million price does not include the proceeds from the pending sale of Shields Asset Management, a former Furman Selz subsidiary, and Regent Investor Services, Inc., a subsidiary of Shields. Both are based in White Plains, N.Y. On June 9, Alliance Capital Management L.P. said it had reached a non-binding agreement in principle to acquire Shields and Regent. The sale of these two companies is expected to close early in 1994 and, under the terms of the Furman Selz sales agreement, will result in additional sales proceeds yielding cash of approximately $60 million to Xerox that will be used to retire debt.
 The sale of Furman Selz is another step in the Xerox plan announced in January to exit financial services and concentrate resources on the document processing business.
 "Although Furman Selz has been profitable and successful in its markets, it is not integral to the Xerox long-term strategic direction for document processing," said Stuart B. Ross, executive vice president of Xerox and chairman and chief executive officer of Xerox Financial Services.
 "We always maintained our entrepreneurial spirit, and this change in ownership is consistent with that spirit," said Edmund A. Hajim, chairman and chief executive officer of Furman Selz. "Our commitment is to help our clients meet their business objectives by providing ideas and services as well as expertise in selected industries. We have found it to our advantage to be small enough to be creative and attentive to the needs of each client, and yet have capital resources and a depth of professional talent that are unusual for a firm our size."
 Furman Selz, acquired by Xerox Financial Services in 1987, is a full service, international investment banking firm. It offers investment banking, asset management, institutional brokerage and research and administrative services. It has approximately 570 employees, 80 of whom are employed by Shields or Regent.
 -0- 10/25/93
 /CONTACT: Barbara McNear of Xerox Financial Services, 203-968-4499, or Edmund Hajim of Furman Selz, 212-309-8233/
 (XRX)


CO: Xerox Financial Services; Furman Selz Holding Corporation ST: Connecticut IN: SU:

MP -- NY035 -- 6317 10/25/93 12:18 EDT
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Publication:PR Newswire
Date:Oct 25, 1993
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