Xerox has settled with one of its biggest shareholders who had sued in an attempt to block a plan for spinning off its document outsourcing business into a new publicly traded company.
Darwin Deason had sued Xerox earlier this month in a US 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.
Under the terms of the settlement, Deason will get 180,000 shares of Xerox's preferred stock and 120,000 preferred shares of Conduent.
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, the company that Deason founded and that was acquired by Xerox for US$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.
(Reporting by Aishwarya Venugopal in Bengaluru; Editing by Shounak Dasgupta)
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