Is the Xerox Saga Nearing an End?
The no-moat firm won't combine with Fuji Xerox, will settle with Carl Icahn and Darwin Deason, and will replace current management.
In a possible final turn of events in the saga of Xerox versus Carl Icahn and Darwin Deason, Xerox (XRX) has agreed to terminate its transaction agreement to combine with Fuji Xerox and entered into a settlement agreement with Icahn and Deason, again. The deal reflects the initially announced plan from May 2, which sees the replacement of Xerox’s current CEO, chairman, and several other directors. The settlement with Icahn and Deason resolves the pending proxy contest against Xerox and its directors. The new board of directors plans to meet to discuss "strategic alternatives" for the company in an attempt to maximize shareholder value. We remain skeptical of the turnaround efforts for the no-moat, negative-trend, high-uncertainty company owing to continued secular headwinds in the printing business, and we reiterate our $32 fair value estimate despite the management changes.
Morningstar Premium Members gain exclusive access to our full analyst reports, including fair value estimates, bull and bear breakdowns, and risk analyses. Not a Premium Member? Get this and other reports immediately when you try Morningstar Premium free for 14 days.
Andrew Lange does not own (actual or beneficial) shares in any of the securities mentioned above. Find out about Morningstar’s editorial policies.
Transparency is how we protect the integrity of our work and keep empowering investors to achieve their goals and dreams. And we have unwavering standards for how we keep that integrity intact, from our research and data to our policies on content and your personal data.
We’d like to share more about how we work and what drives our day-to-day business.
We sell different types of products and services to both investment professionals and individual investors. These products and services are usually sold through license agreements or subscriptions. Our investment management business generates asset-based fees, which are calculated as a percentage of assets under management. We also sell both admissions and sponsorship packages for our investment conferences and advertising on our websites and newsletters.
How we use your information depends on the product and service that you use and your relationship with us. We may use it to:
To learn more about how we handle and protect your data, visit our privacy center.
Maintaining independence and editorial freedom is essential to our mission of empowering investor success. We provide a platform for our authors to report on investments fairly, accurately, and from the investor’s point of view. We also respect individual opinions––they represent the unvarnished thinking of our people and exacting analysis of our research processes. Our authors can publish views that we may or may not agree with, but they show their work, distinguish facts from opinions, and make sure their analysis is clear and in no way misleading or deceptive.
To further protect the integrity of our editorial content, we keep a strict separation between our sales teams and authors to remove any pressure or influence on our analyses and research.
Read our editorial policy to learn more about our process.