One of Xerox Holdings Corp.’s largest shareholders is pressing the Norwalk-based company to consider selling all or part of its customer-financing business, which the investor estimates could be worth more than twice Xerox’s current share price.
Prague-based investment fund STARTEEPO, which said it has increased its beneficial ownership of Xerox to 7.34% through shares and options, outlined its recommendations in a letter to the company’s board and an investor presentation released Tuesday. Xerox sells printers and multifunction devices and provides related document-management, information technology and financing services to businesses.
The investor called for a board-led strategic review of Xerox Financial Services, which finances customers’ equipment purchases. It said Xerox should consider several options, including bringing in an outside capital partner, forming a joint venture or selling part or all of the business.
STARTEEPO estimated the financial services unit has an enterprise value of between $1.3 billion and $1.5 billion. The fund urged Xerox to disclose more information about the unit’s receivables, funding costs, credit performance and profitability.
In a statement posted on its website, Xerox acknowledged STARTEEPO’s increased ownership position but did not directly address the proposed strategic review.
“We welcome all shareholders and remain focused on executing our strategic priorities,” the company said, adding that it would review and consider shareholder input.
Xerox reported second-quarter net income of $13 million, or 7 cents per share, compared with a $106 million loss a year earlier. Revenue rose 22% to $1.92 billion, largely reflecting the addition of Lexmark, a printer and imaging-products manufacturer that Xerox acquired for $1.5 billion in July 2025.
Xerox said it reduced outstanding debt by more than $200 million during the quarter. Revenue attributed specifically to Xerox Financial Services fell 20.3%, to $55 million.
STARTEEPO said it owns 9.5 million Xerox shares, representing a 7.23% stake, up from 5.05% in May. Options held by the fund’s chairman, František Bostl, increase its beneficial ownership to 7.34%.
The investor said it supports Xerox’s current management and turnaround strategy, including its Lexmark integration and debt-reduction efforts. It characterized its proposals as a way to build on those efforts rather than change the company’s broader direction.
Xerox’s share price was trading at $3.14 Wednesday early afternoon, down from its 52-week high price of $4.27.
