Icahn and Deason suggest Xerox consider the possibility of selling itself to a rival
Two of Xerox’s largest shareholders continue their battle to change the direction of the company.
On Tuesday, Carl Icahn and Darwin Deason released a lettersuggesting that Xerox directors consider consolidating its operations with that of a competitor or actually sell the company. The two shareholders believe Xerox may be able to find a corporation willing to pay a large premium for Xerox.
The activist investors, who together own more than 15 percent of Xerox, have been urging shareholders to oppose the deal announced last month that would see Fuji taking a controlling stake in Xerox, through their longstanding joint Fuji-Xerox agreement.
In their letter, Icahn and Deason question the cost savings that company officials have said the merger would bring.
Xerox released astatement saying that the letter from Icahn and Deason is part of a “misguided campaign” to undermine the Fuji Xerox deal, which Xerox officials say would provide a significant opportunity for shareholders to realize long-term, sustainable value as shareholders of a stronger company.