Xerox’s largest individual shareholder has filed a lawsuit that seeks to block the company from splitting into two separate businesses.
That according to the Wall Street Journal, which says that billionaire Darwin Deason has filed a lawsuit claiming that Xerox has violated an agreement it struck with him in 2009 when Xerox acquired his business, Affiliated Computer Services (ACS).
Xerox plans to split into one firm focusing on business services, to be called Conduent, and the other on document technology, which would keep the Xerox name.
Deason claims the split would leave him with an investment in an “unattractive, low-growth” document technology business, according to Bloomberg.
Deason reportedly owns about six percent of Xerox shares. The biggest institutional investor is Carl Icahn’s hedge fund, which has a nearly 10 percent stake and has supported the plan to split the company.
The company issued a statement which said:
"Mr. Deason’s lawsuit is meritless and we intend to seek its dismissal. We are continuing to move forward with our planned separation, which we expect to complete on schedule. We are confident that the separation and the strategic transformation program we are implementing will enhance value for our shareholders today as well as for future shareholders of Xerox and Conduent."