Starteepo Urges Xerox to Explore Strategic Alternatives

Starteepo SICAV a.s., the third largest shareholder of Xerox Holdings Corporation, has demanded that the company's board explore strategic alternatives for its financial services unit and potentially the entire organization. The Prague-based investment fund holds 7.34% of Xerox through stocks and options.

This pressure follows a decision by Xerox to suspend common and preferred dividends to preserve cash after the company reported disappointing third-quarter results and reduced its guidance. In response, Starteepo proposed a restructure of outstanding warrants to facilitate a debt-for-equity exchange before the end of the year.

František Bostl, the founder of Starteepo, stated the fund will intensify dialogue with management to ensure more effective deleveraging and cash flow recovery in 2027. The fund estimates that pursuing strategic alternatives could value Xerox at approximately $3.3 billion, or $18 per share, though it warned this value may erode without aggressive operational improvements.