Investor urges Xerox to explore options for financial services unit

Sept. 8 (Reuters) - Xerox Holdings investor Starteepo urged the office equipment maker on Tuesday to unlock shareholder value and undertake a strategic review of its financial services business.

Starteepo, a Prague-based alternative investment manager led by investor Frantisek Bostl, holds a 7.34% stake in Xerox, according to a letter.

"We have received the materials from Starteepo and will review them as part of our ongoing dialogue with shareholders and our commitment to creating long-term value," a Xerox spokesperson told Reuters.

Starteepo said Xerox should separately disclose financial information for its financial services unit and communicate its strategy for the business no later than its third-quarter earnings.

The investor urged Xerox to hire advisers for a formal strategic review that could consider a joint venture, strategic capital partnership, sale or alternative funding structures for the unit.

Xerox Financial Services provides financing and leasing programs that help businesses acquire office equipment.

Starteepo said the unit could be worth as much as $7.69 per Xerox share, more than double Xerox's closing share price of $3.32 on Friday.

Such steps could help Xerox reach an equity value of $3.3 billion, or more than $18 per share, according to the letter.

Bloomberg News first reported the letter earlier on Tuesday.