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Carl Icahn: Doing The Hard Work

Carl Icahn, largest Xerox (NYSE: XRX) shareholder, has now teamed up with the third largest shareholder Darwin Deason to get Xerox sold. The two own over 15% of the company. They’ll also remove the Xerox CEO Jeff Jacobson. Recall that Icahn helped get Xerox split into two, where Icahn and Deason were on opposite ends of that battle.

To get a sale done, Icahn might push for breaking up the joint venture with Fujifilm Holdings. To get this done Icahn might have to get rid of Jacobson and other directors that can’t make the hard decisions. Icahn is pushing for four board seats. Icahn notes, “Every day that the ’old guard’ remains in power—feebly overseeing the company’s steady decline—is a waste of time that could inevitably erode the value of our investment down to nothing.” The headwind might be navigating Fujifilm’s rights in the joint venture, but there was an accounting scandal at the joint venture last year that could work in providing leverage for a potential buyer.

Here’s the latest Icahn letter to Xerox.

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