Xerox Shareholder STARTEEPO Presses for Strategic Review After Weak Q3, Shares Fall 15.66%

Xerox Holdings Corp. (XRX) shareholder STARTEEPO said Friday it will intensify discussions with management and the board following "disappointing third-quarter results and reduced guidance," urging the company to explore strategic alternatives for its Xerox Financial Services unit and potentially Xerox as a whole. STARTEEPO, which beneficially owns 7.34% of Xerox in stocks and options, said it supports Xerox's decision to suspend common and preferred dividends and prioritize debt reduction. It also proposed restructuring Xerox's outstanding warrants to facilitate a debt-for-equity exchange, which it said could accelerate deleveraging. The investor called Xerox Financial Services a "hidden gem" and said improved disclosures around the unit have increased transparency. STARTEEPO reiterated its view that Xerox could be worth about $3.3 billion, or $18 per share, based on precedent transactions if the company pursues strategic alternatives. Xerox shares were down 15.66% to $1.4050 on the Nasdaq.