Starteepo Pushes Xerox to Spin Off Financial Services Unit

Starteepo acknowledged recent improvements in Xerox’s performance, citing solid second-quarter results and upwardly revised annual guidance as signs of a successful turnaround. Despite this momentum, the fund contends that the market continues to misunderstand the company’s core value. In an open letter, Starteepo suggested that Xerox Financial Services could be worth approximately $7.69 per share under the right strategic direction—a valuation that exceeds the current share price of the entire corporation.

To bridge this gap, the fund is demanding greater transparency regarding the division's specific performance metrics and long-term strategy. Beyond disclosure, Starteepo is pressing the board to retain financial advisers to conduct a comprehensive strategic review, potentially paving the way for a full or partial divestiture of the business unit.