Date
15 August 2018
Xerox has terminated its planned deal with Fujifilm and reached a settlement with activist shareholders Carl Icahn and Darwin Deason. Photo: Bloomberg
Xerox has terminated its planned deal with Fujifilm and reached a settlement with activist shareholders Carl Icahn and Darwin Deason. Photo: Bloomberg

Xerox ends US$6.1 bln Fujifilm deal, settles with Icahn

Xerox Corp announced that it is ending a planned US$6.1 billion deal with Japan’s Fujifilm and that it has reached a settlement with activist investors Carl Icahn and Darwin Deason.

The company also said in a statement on Sunday that CEO Jeff Jacobson has resigned and that John Visentin is expected to take over as the new boss, Reuters reports.

The settlement with Icahn and Deason resolves a proxy contest set to play out at the firm’s 2018 annual meeting, originally scheduled for June 13.

Xerox said earlier this month that it was seeking better terms for a proposed merger with Fujifilm. The move came after the deal prompted a proxy fight from Icahn and Deason, who argued that the merger terms undervalued Xerox.

Icahn and Deason together own 15 percent of Xerox.

“We are extremely pleased that Xerox finally terminated the ill-advised scheme to cede control of the company to Fujifilm,” Icahn said in a statement.

“We have often said that the most important person at a company (by far) is the CEO. We are therefore also pleased that John Visentin, a tried and true veteran in this area, will be taking the helm.”

Apart from the change in CEO, Xerox also replaced five directors as part of a board reshuffle. 

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

Xerox said in its statement that its new board will meet immediately and “begin a process to evaluate all strategic alternatives to maximize shareholder value.”

As part of the settlement, Xerox and Icahn agreed to withdraw their board candidates from the upcoming shareholder meeting, and said the meeting would be postponed.

– Contact us at [email protected]

CG/RC

EJI Weekly Newsletter

Please click here to unsubscribe