Xerox Merger Deal with Fuji is Off

Two of Xerox's largest shareholders opposed the deal, saying that the proposed terms greatly undervalued the venerable copier/printer company.

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Norwalk, Connecticut-based Xerox announces that it is withdrawing its bid with Tokyo-based FUJIFILM Holdings to merge Xerox with the companies’ longstanding joint venture, Fuji Xerox.

The merger deal, first announced in February, was contested by two of Xerox’s biggest shareholders, Carl Icahn and Darwin Deason. Under terms of a new agreement, Xerox has entered into a settlement agreement with Icahn and Deason that includes the removal of Xerox CEO Jeff Jacobson, who will be replaced by John Visentin.

According to the Wall Street Journal, this is Xerox’s second settlement with the two billionaires. They had struck a similar agreement to remove Jacobson and some of Xerox’s board members but that deal had expired earlier this month.

“The new settlement marks a win for Messrs. Icahn and Deason, who agreed to table their proxy fight after several months of drama,” the Journal reports. “They opposed the plan to combine with the joint venture Fuji Xerox, arguing it undervalued Xerox, and had planned to run their own slate of directors for Xerox’s board.

“Xerox appointed five new members to the board and five existing members resigned, in addition to Mr. Jacobson. One of the new members, Icahn Enterprises CEO Keith Cozza, is expected to be chairman.”

Xerox says its new board, backed by the billionaire activists, will be meeting immediately to discuss the best path forward for its company’s shareholders.

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Tony Kindelspire

Tony Kindelspire is the digital content editor for RV PRO magazine. He was the former digital content editor of Sign & Digital Graphics & WRAPS magazines.

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