Xerox settles with large investor over spin-off

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The logo of Xerox company is seen on a building in Minsk, Belarus, March 21, 2016.  REUTERS/Vasily Fedosenko/File Photo

The logo of Xerox company is seen on a building in Minsk, Belarus, March 21, 2016. REUTERS/Vasily Fedosenko/File Photo (Copyright Reuters 2016)

Xerox Corp said on Friday it had settled with one of its biggest shareholders who had sued earlier to block a plan for spinning off its document outsourcing business into a new publicly traded company.

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Darwin Deason had sued Xerox earlier this month in a U.S. District Court in Dallas over the company's plan to divide its legacy copier and printer business from its business process outsourcing unit, which would become a new company called Conduent Inc.

Under the terms of the settlement, Deason will get 180,000 shares of Xerox's preferred stock and 120,000 preferred shares of Conduent. (http://bit.ly/2efhcjl)

Deason owns 6.1 percent of Xerox stock and is the company's largest individual investor and fourth-largest overall, according to Thomson Reuters data.

The Conduent business includes the operations of Dallas-based Affiliated Computer Services Inc, the company that Deason founded and that was acquired by Xerox for $6.4 billion in 2010.

Xerox announced the split in January and also said at the time that activist investor Carl Icahn would get three Conduent board seats after the spin-off. Icahn disclosed his stake last November.

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(Reporting by Aishwarya Venugopal in Bengaluru; Editing by Shounak Dasgupta)