Xerox Holdings Corp. is facing pressure from one of its major shareholders, STARTEEPO, to consider selling or restructuring its customer-financing business, which the investor believes could be valued at more than twice the company’s current share price. STARTEEPO, which has increased its stake in Xerox to 7.34%, suggested in a letter to the board the need for a strategic review of Xerox Financial Services, with options that include partnerships or a potential sale of the business.
The investment fund estimates the financial services unit’s value to be between $1.3 billion and $1.5 billion and has asked Xerox to provide more details on its operations, including financial metrics. While Xerox acknowledged STARTEEPO’s increased ownership, the company did not directly respond to the call for a strategic review, emphasizing its focus on executing current priorities.
In its latest earnings report, Xerox indicated a second-quarter net income of $13 million, a significant recovery from a loss of $106 million the previous year. Revenue rose 22% to $1.92 billion, aided by the acquisition of Lexmark, though revenue from Xerox Financial Services dropped by 20.3%. STARTEEPO expressed support for Xerox’s management and ongoing strategies, framing its proposals as enhancements rather than shifts in direction. As of now, Xerox’s stock is trading around $3.14, lower than its 52-week high of $4.27.
