Xerox Shareholder Seeks Strategic Review and Financial Overhaul
A significant shareholder of Xerox Holdings Corp., Starteepo led by investor Frantisek Bostl, has taken a 7.34% stake in the company and is urging management to unlock value through strategic changes. The activist firm called for a formal review of Xerox's financial services business, suggesting it could be worth up to $7.69 per share—more than double its current stock price. Starteepo also wants increased transparency on this unit’s performance and the hiring of advisers to explore options such as joint ventures or sales. The investor emphasized that despite recent improvements in Xerox's operations, the company's valuation remains low compared to its potential. It proposed an optimized capital structure involving third-party funding while maintaining customer relationships, similar to models used by HP and General Electric. Starteepo believes these steps could elevate Xerox’s equity value beyond $3.3 billion or more than $18 per share. Xerox's shares have declined 13% over the past year, with a current market cap of around $418 million. The company has previously faced activist pressure before, including from Carl Icahn in 2015.
Topics: activist investor financial services unit strategic review Xerox