Xerox Corp. has agreed to appoint a top lieutenant of Carl Icahn to its board as the company prepares to split into two
The new agreement with the activist, the company's largest shareholder with a 9.8% stake, will leave him with a say on the boards of both companies being created, according to a person familiar with the matter. In January, when Xerox had announced the split, it already agreed to give Mr. Icahn three seats on the board of the business-services company, which is to be called Conduent Inc.
Xerox is now appointing Jonathan Christodoro to its board of directors effective immediately. Mr. Christodoro is a managing director of Mr. Icahn's firm and regularly named to the board of his investments, including Herbalife Ltd., Lyft Inc. and PayPal Holdings Inc.
The Norwalk, Conn. company has been preparing to separate the legacy printing and copying business, which had about $11 billion in 2015 revenue, from its business services operations, which had about $7 billion in revenue last year. It expects the work, unraveling a 2010 deal for Affiliated Computer Services Inc., to be done by the end of the year.
It had already announced that longtime Chairman and Chief Executive Ursula Burns wouldn't take an executive role at either company, though she will remain chairman of the board of the legacy hardware business.
Last week, Xerox selected insider Jeff Jacobson to lead the copier and printing business, which will retain the Xerox name. Two weeks ago it hired Ashok Vemuri to be the CEO of Conduent.
Mr. Icahn disclosed a stake in Xerox in November. In January, the company announced the split and the agreement to give the activist three seats on the services company's board.
Mr. Icahn has pushed breakups at a number of companies in recent years, including eBay Inc. Mr. Christodoro was named to PayPal's board after its split from the auction website.
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