This paper deals with segmentation and recognition of touching characters appearing in scannedmathematical expressions. The technique is based on multifactorial analysis that integrates several factors determining cut-positions in a touching character image. A predictive algorithm is developed for efficient selection of possible cut-positions for segmenting touching characters. Experiment has been carried out using a test-set of reasonable size and results show that a considerable improvement in recognition accuracy can be achieved with a modest increase in computations.