Published: Mon, May 14, 2018
Finance | By Loren Pratt

Xerox terminated agreement to merge with Fujifilm, CEO resigns

Xerox terminated agreement to merge with Fujifilm, CEO resigns

Copier company Xerox Corp. has said it was ending an agreement to combine with Japan's Fujifilm Holdings and is entering a settlement deal with investors Carl Icahn and Darwin Deason.

Following the abandoned Fujifilm deal, Xerox now appears likely to go up for sale in an auction, Reuters noted.

He replaces Jeff Jacobson, who resigned as CEO and as a board member.

Under the plan that Xerox and Fujifilm announced in January, the U.S. company's operations would be merged with those of Fuji Xerox, a joint venture between the two firms.

That plan fell apart days later amid recriminations from both sides, but now the Xerox board and the activist investors have settled their differences again.

Mr Icahn welcomed the outcome, stating "we have been exceptionally delighted that Xerox lastly declared the ill advised strategy to seize charge of the business to Fujifilm".

"Over the past several weeks, the Xerox board has repeatedly requested that Fujifilm immediately enter into negotiations on improved terms for a proposed transaction", Xerox's former board said in a statement.

Icahn and Deason own 15% of the USA tech firm.

The company says that while the settlement resolves a pending proxy battle it does not affect any claims of Deason or other shareholders against Fujifilm for "aiding and abetting". In a lawsuit aimed at stopping the merger, Mr. Deason accused Mr. Jacobson of striking the deal to keep a job at the combined company. Fujifilm has said it's appealing a United States court injunction blocking the takeover. The Xerox Board believes that the transaction can not reasonably be expected to be completed under these circumstances, particularly given the court's injunction of the transaction and the lack of shareholder support for the transaction on current terms, as well as the unresolved accounting issues at Fuji Xerox.

Fujifilm is disputing Xerox's "unilateral decision".

Five brand new board administrators have been appointed, " that the united states printer and photocopier manufacturer said in a statement. The pair said they would be willing to consider any offers for the company of $40 a share or more.

"The proposed transaction, including its economic terms, was negotiated at arms' length based on fair valuations and we continue to believe it is the best option created to allow the stockholders of both companies to share the enhanced future value of the combined company with Fujifilm".

Like this: