Xerox shares plunged 30 per cent yesterday amid lingering concerns about a possible cash crunch at the world's market leader of copier machines, analysts said.

Xerox shares were down $3 3/16 (or 30.54 per cent) at $7-1/4 in afternoon trade on the New York Stock Exchange. Volume was 9.25 million shares.

Shares of Xerox have fallen 76 per cent in the past year, including a drop of 49 per cent in the last three months.

Xerox shares last Friday morning fell 10 per cent on rumours that it would seek bankruptcy protection and on general concerns over liquidity.

The company last Friday dismissed the rumours, and said it had tapped a $7 billion (€8.25 billion) line of revolving bank credit for the first time.

A Xerox spokeswoman said yesterday that the company had a policy of not commenting on stock movements, adding that Xerox stood by its October 13th statement reaffirming its liquidity.