Xerox Corp (XRX) – About That Carl Icahn Win – You’re going to want to get on this free newsletter – offering ad-hoc insights not found elsewhere [sign up here]
Is the fact that Carl Icahn has convinced Xerox ($XRX) to split into two really all that great? Since he convinced Manitowoc to do the same in Jan. 2015, shares have fallen 20%. And both the Hewlett-Packard spinoffs are down 15% since breaking up.
In any case, it’s a play that Icahn is familiar with, not just with Manitowoc, but also getting Gannett and eBay to split. All of which are now under performers.
So while everyone calls this a win – I’m skeptical. A shitty company is still a shitty company, even if it goes from a large shitty co. to two smaller shitty cos.
So yes, call it an activist “win” if you will. XRX will split into two companies to help “focus” operations. You’ll have one co. as a copier and printer business and another, services focused, company. The services business is the bread-n-butter now, while hardware is a drag. Icahn owns 8%.
XRX stock isn’t really any better off now than when Icahn showed up in Nov.