What Does Icahn Mean For Xerox?
Credit Suisse analyst, Kulbinder Garcha, mentioned that Xerox’s management has acknowledged Icahn’s investment, and that Icahn had noted in an SEC filing that “he would discuss potential operational changes and strategic alternatives with Xerox management” in addition to possible representation on Xerox's board.
Icahn's Potential Influence On Xerox
Garcha believes the support of a “strong activist” was a “value added benefit” that could help the company improve its business. However, given the earnings misses over recent quarters, similar issues are expected to plague Xerox over the next few quarters, especially within its services segment.
“Given Xerox is in an on-going strategic review, we believe the involvement of Carl Icahn increases the probability of a split, separation, or outright sale of the company, potentially unlocking shareholder value,” Garcha added.
Garcha also expects Icahn to have a say in the selection of the company’s new CFO, given Icahn’s experience in “advising companies across various industries.”
Latest Ratings for XRX
|Sep 2016||SunTrust Robinson Humphrey||Initiates Coverage on||Buy|
|Aug 2016||Morgan Stanley||Maintains||Equal-Weight|
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