Xerox reportedly is nearing a deal with Fujifilm Holdings that would combine Xerox with the joint venture that Xerox has with the Japanese company.
The story in the Wall Street Journal says the deal would see U.S. shareholders own just under half of the new entity.
The WSJ had reported earlier this month that Fujifilm and Xerox were talking about an array of possible alternatives that might or might not involve a change of control for Xerox.
The Journal says the talks could still fall apart or the terms could change. But the paper also says the deal may be announced as soon as Wednesday, which is when Xerox reports 4th quarter earnings.
According to the WSJ, by combining Xerox with the joint venture it has with Fujifilm, the companies believe they can cut costs to combat declining demand.
Xerox has been under pressure by two of its biggest investors, Carl Icahn and Darwin Deason, who said recently they have formed an alliance to encourage the company to make major changes.
Xerox and Fujifilm formed their joint venture more than 50 years ago. It sells copiers and printers in the Asia-Pacific region.
Last Friday, Xerox announced it would be moving several hundred employees out of the Xerox Square building in downtown Rochester, space that it leases, and into buildings it owns at its Webster campus.
Xerox employs about 3,400 people in Monroe County.
A Xerox spokesman says the company has no comment on the latest WSJ story.