{ "docId": "019dd923-622b-71dc-a6dc-2b65d6c48f5e", "docSlug": "221a7c1fe12f", "documentTitle": "Xerox Corporation (XRX)", "authorId": "14_Icahn", "authorName": "Carl C. Icahn", "documentKindSlug": "activist-deck", "documentKindLabel": "Activist deck", "sourceTypeSlug": "activist_investor", "sourceTypeLabel": "Activist investor", "presentationDate": "2018-04-17 00:00:00", "orientation": "landscape", "aspectRatio": 1.3333334, "pageNumber": 11, "pageCount": 44, "prevPage": 10, "nextPage": 12, "slideType": "expose_contradiction", "function": "expose_contradiction", "density": "dense", "nDataPoints": 0, "notes": "Includes a direct quote from a Xerox director (Charles Prince) to support the claim of deceit.", "elementsJson": [ "headline_text", "bullet_list", "quote_block" ], "metadataConfidence": 1, "imagePath": null, "slideHref": "/slides/019dd923-622b-71dc-a6dc-2b65d6c48f5e/11", "deckHref": "/decks/019dd923-622b-71dc-a6dc-2b65d6c48f5e", "deckJsonHref": "/decks/019dd923-622b-71dc-a6dc-2b65d6c48f5e.json", "deckAnchorHref": "/decks/019dd923-622b-71dc-a6dc-2b65d6c48f5e#slide-11", "components": [ { "bbox": null, "kind": "callout", "text": "The proposed transaction is the result of an improper and fraudulently concealed “crown jewel” lock-up buried in the JV agreements that Xerox and Fuji entered into at least 17 years ago", "attrs": null, "subkind": null, "toolName": "Visual emphasis", "toolSlug": "visual-emphasis", "confidence": null, "componentId": "019dd952-ee3c-76df-9645-c7cc3ba625f7", "frameworkName": null, "frameworkSlug": null }, { "bbox": { "h": 0.08, "w": 0.9, "x": 0.05, "y": 0.31 }, "kind": "list", "text": "Xerox says the “crown jewel” lock-up in the JV agreements “limit[s] Xerox’s strategic flexibility” such that Xerox could not run a more customary process to explore a sale to a private equity buyer or another strategic acquirer", "attrs": null, "subkind": "bullet", "toolName": null, "toolSlug": null, "confidence": null, "componentId": "6eab50ec-425f-4abe-910b-864b488561e5", "frameworkName": null, "frameworkSlug": null }, { "bbox": { "h": 0.08, "w": 0.9, "x": 0.05, "y": 0.73 }, "kind": "list", "text": "This intentional deceit prevented shareholders from ever having the opportunity to push management to terminate or renegotiate the JV agreements, which would have given Xerox more flexibility to pursue strategic alternatives over the past 17 years", "attrs": null, "subkind": "bullet", "toolName": null, "toolSlug": null, "confidence": null, "componentId": "86bf666c-c0a5-4eed-bf66-9d7889f1c3f6", "frameworkName": null, "frameworkSlug": null }, { "bbox": { "h": 0.12, "w": 0.9, "x": 0.05, "y": 0.4 }, "kind": "list", "text": "Yet the very first mention to shareholders of this lockup did not occur until nine days after the proposed Fuji deal was announced (i.e., when it could be used to push through a self-serving transaction), even though at least one Xerox director (Charles Prince) was already pointing out the lock-up to his personal contacts", "attrs": null, "subkind": "bullet", "toolName": null, "toolSlug": null, "confidence": null, "componentId": "9d3bc785-3760-4748-8cc6-f5dd24ba400f", "frameworkName": null, "frameworkSlug": null }, { "bbox": { "h": 0.08, "w": 0.9, "x": 0.05, "y": 0.22 }, "kind": "list", "text": "The proposed transaction is the result of an improper and fraudulently concealed “crown jewel” lock-up buried in the JV agreements that Xerox and Fuji entered into at least 17 years ago", "attrs": null, "subkind": "bullet", "toolName": null, "toolSlug": null, "confidence": null, "componentId": "cb73d47f-5d71-4351-823c-2087f5a72971", "frameworkName": null, "frameworkSlug": null }, { "bbox": { "h": 0.15, "w": 0.7, "x": 0.15, "y": 0.53 }, "kind": "quote", "text": "[It’s] sad: a (formerly iconic) US company selling control to a Japanese company.... But there is a Joint Venture Agreement...which made it practically impossible for Xerox to sell to anyone else.... A really amazing problem", "attrs": null, "subkind": "pull-quote", "toolName": null, "toolSlug": null, "confidence": null, "componentId": "ac08d23d-4492-40d0-b07a-f98e7add3913", "frameworkName": null, "frameworkSlug": null }, { "bbox": null, "kind": "quote", "text": "[It's] sad: a (formerly iconic) US company selling control to a Japanese company.... But there is a Joint Venture Agreement...which made it practically impossible for Xerox to sell to anyone else.... A really amazing problem” — Charles Prince (Xerox director), in a personal email, February 1, 2018", "attrs": null, "subkind": null, "toolName": "Authority citation", "toolSlug": "authority-citation", "confidence": null, "componentId": "019dd952-ee3c-76df-9645-cbb652c30721", "frameworkName": null, "frameworkSlug": null }, { "bbox": { "h": 0.15, "w": 0.9, "x": 0.05, "y": 0.05 }, "kind": "title", "text": "Xerox also has a disgraceful governance record – the Company concealed the “crown jewel” lock-up it gave Fuji at least 17 years ago and now claims that the lock-up prevents anyone other than Fuji from buying Xerox", "attrs": null, "subkind": "headline", "toolName": null, "toolSlug": null, "confidence": null, "componentId": "2d19eaad-9f27-465b-8380-5f8ec3dea758", "frameworkName": null, "frameworkSlug": null } ], "metrics": [], "tools": [], "frameworks": [ { "name": "fraud-exposure", "slug": null, "matchId": "34006109-9f71-4638-af53-a3eb0cf1b3b6", "evidence": "The slide explicitly frames the concealment of the lock-up as 'fraudulently concealed' and 'intentional deceit'.", "confidence": 0.9 } ], "arcBeats": [ { "to": 20, "from": 11, "beatId": "9db058f1-06a6-4de1-8925-586982018b20", "arcName": "Problem-Agitate-Solution", "arcSlug": "problem-agitate-solution", "beatName": "Evidence", "beatSlug": "evidence", "evidence": "The document presents evidence to support its claims, including financial data and expert opinions.", "position": 2, "confidence": 0.8, "parentBeatName": null, "parentBeatSlug": null } ], "loops": [], "imagePathAlt": null, "thumbSrc": null, "thumbSrcAlt": null, "locked": true }