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Xerox settles with shareholder

November 1, 2016

The OEM’s largest shareholder who attempted to block the split of the company has agreed a settlement.xerox

The shareholder, Darwin Deason, had sued the company because of the spin-off of its document outsourcing business, as he felt that his shares would lose value after the split, reported CRN.

The court action came after Xerox announced the split of the company, meaning that the document outsourcing would become separate and be named Conduent. Xerox has settled with Deason by giving him 180,000 shares of Xerox “preferred stock” and 120,000 preferred shares of Conduent stock. Deason is the company’s largest individual investor, and owns 6.1 percent of Xerox stock – he is also the fourth largest investor overall “according to Thomas Reuters data”.

Deason founded the Dallas-based Affiliated Computer Services company, which was acquired by Xerox in 2010 for $6.4 billion and became part of the Conduent business after the split. When Xerox announced the split in January, it also declared that “activist investor” Carl Icahn would “get three Conduent board seats” after the spin-off, as Icahn owns 7.13 percent of the company.

 

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