Xerox scraps $6.1bn Fujifilm deal
In an apparent victory for activist investors Car Icahn and Darwin Deason, American printing company Xerox has ditched a proposed $6.1bn (£4.5bn) merger with Japans Fujifilm.
As part of the agreement, which resolves litigation brought against the company by Icahn and Deason, Xerox will be brought under new management, with CEO Jeff Jacobson replaced by John Visentin.
The two companies had agreed to merge Xerox into their joint Asian venture, Fuji Xerox, back in January, a move that Icahn and Deason vehemently opposed.
Read more: Xerox boss resigns over troubled Fujifilm deal
The victory for the billionaire investors is a major blow to Fujifilm in its Xerox takeover attempt, however, the American printing company is still expected go up for sale in an auction later this year, giving Fujifilm another chance to enter a bid.
In a statement, the Xerox board said that it had “repeatedly requested” a better deal from bu that “despite our insistence, Fujifilm provided no assurance that it will do so within an acceptable time frame”.
Investor Icahn said: “We are extremely pleased that Xerox finally terminated the ill-advised scheme to cede control of the company to Fujifilm. With that behind us and new shareholder-focused leadership in place, today marks a new beginning for Xerox.
Read more: Ousted Xerox boss to stay as Icahn and Deason allege 'brazen self-interest'
Last month, the company announced that Jeff Jacobson and most of the Xerox board wouldl be stepping down, before changing tack a few days later and saying that Jacobson would stay on, a move that Icahn and Deason called an example of "brazen self-interest".
Following the latest announcement, Deason said: “With the limiting Fujifilm agreement terminated, Xerox is now positioned to conduct a true, robust strategic alternatives process.”
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