Xerox would be divided into separate hardware and services companies in the split, which could happen as soon as Friday morning when Xerox reports earnings, sources told the Journal. Investor Carl Icahn would get three board seats at the services arm of the company, the sources said.
"We think this is a major move and will greatly enhance shareholder value," Icahn told CNBC. "I have had several meetings with [CEO] Ursula Burns and applaud and respect her for doing what she believes shareholders want — just as John Donahoe did with eBay and PayPal."
Xerox shares were down 1 percent in after-hours trading trading Thursday.