Interesting article just let out a couple of hours ago... things are catching up https://enbulletin.com/2019/03/18/position-decreased-in-xerox-corp-by-deason-darwin/
3 replies (most recent on top)
According to the SEC filing for the new holding company, they are converting all series B preferred stock to series A. Deason is the only one holding series B.
https://www.sec.gov/Archives/edgar/data/108772/000119312519077419/d723507dex101.htm
"Item 3.03
Material Modification of the Rights of Security Holders
The information set forth under “Item 1.01 Entry into a Material Definitive Agreement” is incorporated by reference into this Item 3.03.
On March 15, 2019, Xerox and Darwin Deason entered into a letter agreement (the “Waiver Letter”), pursuant to which Mr. Deason, in his capacity as the holder of all of the issued and outstanding shares of Xerox Series B Preferred Stock, waived certain provisions of Xerox’s certificate of incorporation and consented to the Reorganization.
The foregoing description of the Waiver Letter and the waiver and consent contemplated thereby is not complete and is subject to and qualified in its entirety by reference to the Waiver Letter, a copy of which is filed with this Current Report on Form 8-K as Exhibit 10.1 and the terms of which are incorporated by reference herein."
He's not reducing his position, he's simply converting his series b stock to common preferred stock. He did not have voting rights with his series b stock but will have 1 vote for every 10 shares in the new holding company. They are stacking the deck to get approvals by voting shareholders to sell off the pieces of the company.
He's still the only holder of series b prefered stock..which pays a $20 dividend per share. That's $4million per quarter or $16 million per year.
Looks like he's setting up to trade out that stock for new preferred stock in the holding company