Starteepo steps up Xerox activist campaign
Starteepo, a major shareholder in Xerox, is pushing the printer and business technology company to take steps to unlock value, including a strategic review of its financial services operation and a significant reduction in leverage, according to a report by Bloomberg.
Xerox shareholder Starteepo is intensifying its push for the company to unlock value, according to Bloomberg. The alternative investment manager, led by Frantisek Bostl, holds 7.34% of Xerox and has issued a statement and letter to the board outlining its demands. Starteepo is advocating for a strategic review of Xerox's financial services operation, a significant reduction in leverage, and greater transparency around the division.
Proposed options include a joint venture, strategic capital partnership, sale of the business, or alternative financing arrangements. Bostl contends that the financial services unit could be worth up to $7.69 per share, more than double Xerox's current price. The investor estimates implementing its proposals could yield an equity value of $3.3 billion, or over $18 per share.
Xerox shares surged 6.9% in early New York trading, recovering from a 13% drop over the past year, bringing the market capitalization to approximately $418 million. Starteepo first disclosed its stake in May and expanded it in July. The activist campaign follows recent scrutiny of Xerox's balance sheet and capital structure, with hedge fund Converium Capital also expressing interest in the company's bonds.
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