The cash offer opens on June 17, 1999 and closes on July 16. The floating stock of Moxi Xerox is very low as the promoters hold a substantial portion of 76.5 per cent stake in the company. If the offer goes through, Modi Xerox will be delisted from the bourses. The open offer follows Xerox Modicorp's plans to amalgamate Modi Xerox Ltd and Mxerox Financial Services into the company. The merger is aimed at better resource utilisation and facilitate the enhanced involvement of Xerox Corporation, the US-based promoter, in the day-to-day affairs of the company.

After acquiring a majority stakein Modi Xerox, the American xerox business giant has plans to introduce high-technology products locally. Another company promoted by the same promoters, Modi Xerox Financial Services (MXFS), will also be acquired by Xerox Modicorp. The open offer in this case is at a price of Rs 100 per share. In the past two years, Modi Xerox has been facing rough weather on the performance front. The company faced intense competition and lower demand for its products as it had failed to introduce any new products.

The poor performance has seen the stock sliding to a low of Rs 50 in September 1998. However, in March 1999, the stock touched a peak of 222. From this level, the stock has seen a steady fall to the current level of Rs 130. Investors who had entered at around 222-level may now face a dilemma as the open offer price is just Rs 135.