Icahn Turns 7.1% Stake Into Spin-off and Three Board Seats in Two Months

Xerox announced in after-market action on Thursday that it would split into two companies, Reuters reports. Activist investor Carl Icahn will receive three seats on one of the company's boards. One division will focus on Xerox's printers, copiers, and other hardware, while another will focus on Xerox services like document management and business communications. Icahn will sit on the board of the service company. In November, Icahn bought a 7.1 percent stake in the company, deeming it "undervalued." He indicated he wanted to discuss operational changes with management. Less than two months later, he has commanding board presence of his own Xerox spin-off. Xerox stock is down nearly 13 percent in the past five years, closing Thursday at $9.21 a share.