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Xerox Splits Into Two Companies, Icahn Not Behind Move (thestack.com)

Posted by timothy on from the after-that-they'll-just-keep-making-more dept.

An anonymous reader writes: Printer and copier maker Xerox has announced its plans to split into two separate publicly traded companies, giving billionaire Carl Icahn three board seats in the settlement. CEO Ursula Burns has now claimed that the decision was not driven in any way by the activist investor. Burns confirmed that the company had begun looking into its structure and portfolio from October 2015, in order to better reflect changes in the market. She added that no conversations with Icahn took place prior to these reviews, or before it made the final call. Xerox will now be divided into a new business process outsourcing company, and a document technology firm. Burns explained that her role, in either company, has not yet been confirmed. However now that the split is being implemented, leadership discussions will be held shortly, she said.

12 of 45 comments (clear)

  1. true enough, but... by Anonymous Coward · · Score: 4, Funny

    It's true, Xerox is splitting into two companies. But the second company is merely going to be a copy of the first one.

    1. Re:true enough, but... by ClickOnThis · · Score: 4, Funny

      It's true, Xerox is splitting into two companies. But the second company is merely going to be a copy of the first one.

      Yeah but...

      Which one is the clone?

      It's the one that's still warm.

      --
      If it weren't for deadlines, nothing would be late.
    2. Re:true enough, but... by U2xhc2hkb3QgU3Vja3M · · Score: 2

      There are many copies, and they have a plan.

  2. Business Process Outsourcing by 110010001000 · · Score: 4, Funny

    Dad, what do you do for a living? I am a Business Process Outsourcer.

    1. Re:Business Process Outsourcing by forty-2 · · Score: 2

      It mean I spend every night sitting on the edge of my bed, with a gun in my hand, crying, son.

      --
      never drink kool-aid from a big vat
  3. Corporate governance question by swb · · Score: 2

    From the fine summary:

    giving billionaire Carl Icahn three board seats in the settlement

    Is Corporate Governance actually supposed to work this way? It sounds like there will be three board members appointed, none of which are independent and who all just do the bidding of Icahn.

    Why not just cut two seats and give Carl's new seat 3 votes?

    1. Re:Corporate governance question by 110010001000 · · Score: 2

      Don't you get it? This has nothing to do with Carl Icahn. They just happened to give him 3 seats. Just a coincidence. Really. They were planning it all along.

    2. Re:Corporate governance question by AuMatar · · Score: 2

      Its not uncommon with large investors. If you have a startup and I buy 40% of the company, its normal for me to have 40% of the board as well. A board's job is to be independent of the management, not of the owners.

      As for 3 seats vs 1 seat- 3 seats gives 3 different people with different sets of views and opinions when asked for advice. It also means Carl doesn't have to show up to board meetings himself, his cronies do.

      --
      I still have more fans than freaks. WTF is wrong with you people?
  4. C'mon headline writers - wake up! by xxxJonBoyxxx · · Score: 2

    And Then There Were Two - Xerox Copies Self ...with a lead of:

    Remember Xerox? Your parents probably did. But now there's two of them to make fun of now that...

  5. Stop calling him an activist investor by Sycraft-fu · · Score: 2

    That's a bullshit term his PR people have come up with and for some damn reason the media, Slashdot included, seem to play along. Call him what he is: A corporate raider. He likes to get controlling shares of companies, load them with debt, sell of their assets, and leave them to rot.

  6. Icahn is a corporate raider by Beeftopia · · Score: 3, Insightful

    So his stake in Xerox is 9.12%: "Carl Icahn (Trades, Portfolio) increased his shareholding of Xerox XRX +0.00% (NYSE:XRX) in January, a filing revealed Friday as the company announced increased partnership with him and major changes in line with his vision for the company.

    Icahn’s funds purchased an additional 5,740,871 during the period from Jan. 4 to Jan. 8, at an average price of $10.05 per share. According to the filing, the purchases brought his total stake in the company to 92,377,043 shares, or 9.12% of its shares outstanding, and a boost of 12.2% from his last disclosure in December.

    Icahn’s three selected board members will join a nine-member board of directors for the BPO company. The current board will begin searching for an external candidate for CEO of the BPO company and also allow Icahn to choose a representative to be involved in the search process, Xerox said.
    [...]
    “Happy to announce we reached an agreement with $XRX re: separation into two independent public companies,” Icahn said on Twitter TWTR +0.00% Friday. “We believe the separation will greatly enhance value for $XRX shareholders. I applaud and respect Ursula Burns for doing what she believes shareholders want – as @Donahoe_John did with $Ebay EBAY +0.00% and $PYPL. I hope and believe the results will be just as good for XRX shareholders.”

    Icahn’s tweets referred to the division of Paypal (NASDAQ:PYPL) from eBay (NASDAQ:EBAY) that he prompted last year and which became complete in July. Since they began trading separately on July 20, eBay’s shares have fallen 18.3% and Paypal Holdings shares have declined 6.7%."

    -- Forbes link (sorry folks, but that's where the info was)

    Icahn himself says he "reached an agreement" with Xerox. The guy is a famous corporate raider with a significant stake in the company. Whoever said Icahn had nothing to do with it is delusional or lying.

  7. Lost by transami · · Score: 2

    Xerox is probably a lost cause. Their failure to license solid ink technology, and instead try to hoard it for themselves, has probably cost them tens if not hundred of millions in revenue. They are an old fuddy-duddy company, that has long lost their way and have been living on borrowed time granted them by their towering forebearers ever since. I'll be surprised if they last another decade.

    --
    :T:R:A:N:S: