Xerox Reportedly Plans Split Up And Give Icahn Three Board Seats

(RTTNews) - Xerox Corp. (XRX) is planning to split into two, the Wall Street Journal has reported, citing people familiar with the matter. According to the report, the company may divide itself to companies containing its hardware operations and another containing its services business.

The Norwalk, Connecticut based company may announce this plan tomorrow, when it is reporting its quarterly results. The report further noted that billionaire investor Carl Icahn will be getting three seats on the company's board.

In November 2015, activist investor Icahn disclosed that he has accumulated a 7.13 percent stake in Xerox, saying that the company is undervalued and he may seek board seats. Then, Icahn said he intended to have discussions with representatives of the company's management and board of directors relating to improving operational performance and pursuing strategic alternatives, as well as the possibility of board representation.

In December last year, Icahn added to his holding in the company to 8.13 percent or approximately 82.3 million shares aggregate, according to an amended Schedule 13D filing with the regulator.