Activist STARTEEPO Pushes Xerox to Unlock XFS Value, Sees $18+ Per Share
XRX has more than doubled off its 52-week low of $1.19.
Summary
STARTEEPO, holding 7.34% of Xerox, sent a new letter to the board ahead of the October 29 Q3 earnings call, renewing its push for transparency on Xerox Financial Services and a formal Board-led strategic review of the unit. The fund estimates XFS alone could be worth roughly $7.69 per share, more than double the current share price for the entire company, and argues a deleveraged Xerox could be worth up to $3.3 billion in equity value, or more than $18 per share, to potential suitors. This follows the September 8 open letter and 13D/A that disclosed the 7.34% stake, and STARTEEPO says engagement with the board and management since then has been encouraging. The pressure lands just before Q3 results, with the fund explicitly expecting management to address XFS strategy and deleveraging on the call. Xerox's Q2 returned it to profitability and raised full-year guidance, but cash burn and high debt remain the core risks the activist is targeting.
At the time of this announcement, XRX was trading at $2.50 on NASDAQ in the Technology sector, with a market capitalization of approximately $324.3M. The 52-week trading range was $1.19 to $3.78. This news item was assessed with positive market sentiment and an importance score of 7 out of 10. Source: BusinessWire.