For $542 million, NYSE-listed Xerox bought back the shares of its main shareholder Carl Icahn on Thursday September 28. When the transaction closes today, the high-profile American businessman will no longer own any ordinary shares in the group, which generates sales of $7 billion and employs almost 25,000 people worldwide.
Carl Icahn, via Icahn Associates Corporation, owns 21.8% of the outstanding shares in the manufacturer of office and production printing presses. In conjunction with the buyout, its employees, Jesse Lynn and Steven Miller, as well as James Nelson, an independent director, will resign from Xerox's board of directors. Scott Letier, who has served on the Board since 2018, will become Chairman of the Xerox Board.
The shares were purchased for $15.84 per share, the closing price of Xerox common stock on the day before the purchase agreement was signed.
Carl Icahn, one of Wall Street's icons, is known for acquiring large stakes in companies and then demanding radical changes, such as layoffs, resignations or different strategies, in order to boost their share price.
"For nearly a decade, Carl and his affiliates have been major Xerox shareholders, providing invaluable advice, guidance and activism to support our evolution as a leader in workplace technology, said Steve Bandrowczak, President and CEO of Xerox. On behalf of Xerox and the Board of Directors, I would like to thank Carl and our outgoing directors for their dedication to Xerox and for contributing to our past, present and future success."
Since his arrival in 2015, relations between the shareholder and Xerox management have not been smooth. Notably, in 2018, Carl Icahn, along with another investor, had succeeded in getting himself get rid of Xerox's CEO and the majority of its directors who wanted to merge Xerox and Fuji Xerox.
Carl Icahn states in the official Xerox press release: " As a long-standing Xerox shareholder, I have seen this iconic brand through the most difficult times and emerge stronger, while returning significant amounts of capital to shareholders. I have helped Xerox maintain its independence while continuing its consolidation."
