Daily Management Review

Xerox to buy back its shares from Carl Icahn for $542M


US Xerox Holdings, one of the world's leaders in printing technology, will purchase all of Carl Icahn's shares in the company for a total of $542 million.

The purchase price will be $15.84 per paper, which is slightly more (1.6%) than Wednesday's closing price, according to a company statement. The buyout will be funded by additional debt, and the deal will finalize on September 29.

According to FactSet, Carl Icahn holds around 34.2 million Xerox shares, or 21.8% of the company's stock.

Jesse Lynn and Stephen Miller, who work for Icahn's investment company, would resign from the board of directors of Xerox as part of the agreement.

Shares of Xerox are down 1.2% in Thursday trading. The company's market capitalization increased 7.9% to $2.5 billion during the previous 12 months, while the S&P 500 index increased 14.9% during that time.

source: bloomberg.com