Xerox Corp (XRX) – About That Carl Icahn Win

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Xerox Corp (XRX) – About That Carl Icahn Win
Chart via S&P Capital IQ

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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.

Xerox

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.

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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.

Xerox

 

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