WXXI AM News

Report: 2 major Xerox investors may push for the company to explore a potential sale

Jan 22, 2018

Credit Emily Hunt / for WXXI News

A new report says that two of Xerox’s biggest investors are pushing the company to consider a possible sale.

The story is in the Wall Street Journal which says that billionaire investors Carl Icahn and Darwin Deason have formed an alliance and plan to encourage Xerox to look at the possibility of selling the office technology company.

Icahn and Deason together control more than 15% of Xerox shares, and they already separately had been calling for changes at the company.

According to the Journal, Icahn and Deason plan to call on the company to explore strategic alternatives, which could include a sale. The paper says the two investors also want Xerox to break its joint venture with Fujifilm and fire CEO Jeff Jacobson.

A Xerox spokesman released this statement:

“The Xerox Board of Directors and management are confident with the strategic direction in which the Company is heading and we will continue to take action to achieve our common goal of creating value for all Xerox shareholders.”

At Brighton Securities, Chairman George Conboy does expect to see some kind of a shakeup at Xerox.

“I think you’re likely to see a major change at Xerox, because the two investors, Carl Icahn, and Darwin Deason, combined, hold far more Xerox stock than all of management and directors combined,” Conboy told WXXI News.

As far as a possible sale is concerned, Conboy believes it may be difficult for Xerox to find a buyer if it comes to that.

Xerox employs about 3,700 people in the Rochester area. The company reports 4th quarter earnings later this month.