Xerox Corp. has acquired $ 6.1 billion by Fujifilm Holdings Corp. canceled and separated from its CEO and awarded a major victory to activist investors Carl Icahn and Darwin Deason
agreement with the two investors, who together own about 13 percent of Xerox, the US office equipment provider said CEO Jeff Jacobson returns along with several other board members. John Visentin is expected to assume the post of CEO, while Keith Cozza, the CEO of Icahn Enterprises, will take over.
The agreement marked the end of a turbulent fight between Xerox and Icahn over a transaction that would take control of iconic American innovators synonymous with office copying machines to a Japanese firm. Under an agreement proposed in January Xerox would first merge with a joint venture with Fujifilm in Asia, and the Tokyo-based company would eventually acquire just over 50 percent of the combined company.
Icahn and Deason have opposed the Fujifilm transaction from the beginning. Deason sued Xerox in February to block the proposal, accusing Jacobson of acting unauthorized to reach an agreement that saved his job at the expense of shareholders. The lawsuit also alleged that management had violated their fiduciary duties.
Last week, Icahn and Deason reiterated their demands on Xerox to scrap the transaction, dismiss Jacobson, hire a new CEO, and resign the board. The pair said they would be prepared to consider offering the company $ 40 per share or more.
Fujifilm shares rose 1.1 percent on Monday at 10:30 in Tokyo, giving the company a market value of $ 20.2 billion. Xerox closed the day in the US with a stock market value of $ 7.7 billion by 2.9 percent to $ 30.17.
"It's not bad for Fujifilm to have Xerox close the deal," said Tomoichiro Kubota, a market analyst with Matsui Securities Co., over the phone. "From the beginning, the market did not accept the deal as good, as they do not see much growth potential at Xerox."
Audited Financial Information
In its late-night statement, Xerox Fujifilm's failure to provide information mentioned financial information for the joint venture, including timely review of its decision to terminate the merger agreement. Bloomberg reported earlier on the cancellation of the transaction.
A Fujifilm representative declined to comment. 19659015] resumes discussions with Xerox about a possible combination of "superior terms", but it has not received any new proposal from the US company. Fujifilm has also said that it is appealing a US court order b
"We are delighted that Xerox has finally closed the unwise system to relinquish control of the company to Fujifilm," Icahn said. "This is a new beginning for Xerox."
Xerox said it believes that the transaction was under the circumstances, especially given the court order and that shareholders did not support this on current conditions and unresolved accounting issues at Fuji Xerox.
"The Board also considered potential instability and disruption during a proxy contest, and without a viable, timely transaction with Fujifilm, the Xerox Board believes that it is in the best interest of the company and all of its shareholders to do the planned business End transaction and conclude a new agreement with Icahn and Deason, "it said.
– With the support of Sam Nagarajan and Bernie Kohn