Thread regarding Xerox Corp. layoffs

Carl Icahn Bought HP Stake Knowing of Xerox Bid Plans, Fund Says

This just in from Bloomberg News:
A Xerox Holdings Corp. shareholder sued Carl Icahn and an investment vehicle he controls, alleging they bought $1.2 billion worth of HP Inc. shares knowing that Xerox was considering acquiring the stock at a premium.

The Miami Firefighters Relief and Pension Fund filed the lawsuit in New York state court in Manhattan on Friday, alleging Icahn, Icahn Capital LP and High River Limited Partnership breached their fiduciary duties to Xerox by buying HP stock with the knowledge that “Xerox was either considering making an offer to purchase HP, had already approached HP about a possible merger into or acquisition by Xerox, or of the obvious merits of Xerox’s potential acquisition of HP.”
A representative for Icahn was not immediately available for comment.

Icahn Capital is Xerox’s largest shareholder, owning almost 11% of the stock as of September 30. Icahn late that month disclosed that Icahn Capital and High River together owned more than 62.9 million shares of HP, making Icahn the fifth-largest shareholder in the company.

A previous disclosure by Icahn in August listed no HP stock as of June 30. While the date of Icahn’s purchases were not revealed, an analyst speculated two days after the end of the third quarter that an activist investor might be targeting HP shares citing reasons including a “huge spike” in trading volume without an obvious reason, according to the suit.

HP last month rejected an unsolicited, cash-and-stock offer from Xerox worth $22 per share, or about $33 billion. Icahn earlier this month urged HP to push ahead with takeover talks, arguing the hardware maker’s standalone plans amount “to little more than rearranging the deck chairs on the Titanic.” Xerox has taken its case directly to shareholders, saying the takeover would create as much as $1.5 billion in potential revenue growth, according a presentation to investors made public earlier this week.

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Post ID: @OP+12uMwL9f

6 replies (most recent on top)

The announcements about partnering with HP had been public information prior to him purchasing stock. There is little to zero chance we will penalized for something. @12uMwL9f-2mql: This is a civil suit for damages $$$, which Carl has plenty of. So, he pays them off and moves on with his life. He isn't going to jail.

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Post ID: @3rnh+12uMwL9f
  • 1cmx: hard to prove by a single litigant unless they have deep pockets. Easy for SEC and law enforcement to get it rolling and access Carl’s comms between Cozza, himself, John V. It’s clear insider trading. It doesn’t matter that he wants consolidation. The end doesn’t justify the means AND he will personally profit from it. To USA readers: sound familiar?
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Post ID: @2gne+12uMwL9f

Looks like Carl might be spending some time behind bars for insider trading. Opps.

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Post ID: @2mql+12uMwL9f

Under the original agreement with Xerox, Icahn was granted access to insider information. It's hard to think he didn't know. At the same time, it's been widely reported that he has said from the very beginning that he thought the industry needed to consolidate. Probably really hard to prove.

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Post ID: @1cmx+12uMwL9f

another criminal move exposed to be swept under a rug and paid for by Icahn petty cash.

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Post ID: @vxw+12uMwL9f

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