Xerox and Carl Icahn Conclude Investment Saga. A Closure Of Tumultuous Journey

Carl Icahn, the famous activist investor, is finalizing his investment in Xerox Holdings Corp. XRX by selling his remaining stake to the company for a substantial $542 million. 

This move marks the conclusion of a tumultuous journey that spanned several years, involving lawsuits and strategic shifts.

Under the terms of the agreement, Xerox will repurchase all shares held by Icahn and his affiliates at $15.84 per share. To finance this transaction, Xerox will utilize a new debt facility.

Two board members affiliated with Icahn, Jesse Lynn and Steven Miller, will step down from Xerox's board, as will Xerox Chairman James Nelson. 

The reins of the board will be handed over to Scott Letier, who has been serving on the board since 2018 and will take on the new chairman role.

Icahn's involvement with Xerox began in 2015 when he disclosed his stake in the company, urging Xerox to explore strategic alternatives, enhance its operations, and secure board representation, Bloomberg noted.

Eventually, Xerox split into two publicly traded entities, separating its service and hardware businesses and granting Icahn three board seats.

Subsequently, in 2018, Icahn and another shareholder, Darwin Deason, strongly opposed a proposed merger between Xerox and Fujifilm Holdings Corp., arguing that the deal undervalued the company. 

This dispute resulted in legal actions, a court-ordered halt to the merger, and the resignation of Xerox's then-CEO, Jeff Jacobson.

Following Xerox's withdrawal from the merger, Fujifilm engaged in legal battles with the company before ultimately reaching an agreement to acquire Xerox's stake in their Asia Pacific joint venture for $2.3 billion in 2019.

Icahn also found himself entangled in legal disputes during this period, facing a lawsuit from a Xerox investor in 2019, alleging that he purchased HP Inc. shares with knowledge of Xerox's bid.

Price Action: XRX shares are up 1.33% at $16.05 on the last check Thursday.