Fujifilm likely to review deal with Xerox

Fujifilm likely to review deal with Xerox

Fujifilm likely to review deal with Xerox

Xerox CEO Jeff Jacobson is leaving the company.

Unless something derails the deal, Xerox will appoint Icahn Enterprises' Keith Cozza to its board, along with Nicholas Graziano, Scott Letier, Jay Firestone, Randolph Read and John Visentin.

A NY judge last week issued an order enjoining the merger, agreeing with Icahn and Deason that Jacobson had been "hopelessly conflicted" in negotiating the deal.

Xerox shares fell the most in six months, dropping as much as 6% to $30.37 in New York Wednesday.

Fujifilm's market capitalization stood at 2.12 trillion yen ($19.31 billion) at market close on Wednesday.

Xerox said the new board will meet to reevaluate its joint venture deal with Fujifilm, including terminating its relationship with the company. The Japanese firm in its statement added, "We strongly believe that all Xerox shareholders should be able to decide for themselves the operational, financial, and strategic merits of the transaction".

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Media reports said Fujifilm, which saw its shares tumble 5.5% in Tokyo after news of the ouster, said it planned to file an objection with a court over the settlement. It is said that the agreement between the two hugely impact the majority of the board not forgetting that it also puts Fujifilm Holdings Corp at a major risk. Fujifilm would then purchase 50.1% of Fuji Xerox, and ultimately take control of the U.S. company.

"It can not possibly be, sentiment-wise, very positive for Fuji", said Amir Anvarzadeh, senior strategist at Asymmetric Advisors in Singapore.

The feud between the shareholders and the once-iconic USA company comes amid a spate of recent activism that focuses on bolstering shareholder value. Billionaire Paul Singer's activist fund, Elliott Management, escalated pressure on Hyundai Motor Group on a plan to merge units. Ultimately, Fujifilm would take control of Xerox, whose brand became synonymous with photocopying. The owner of about 15 per cent of Xerox, Icahn, indicated dissatisfaction with the overall deal. The two shareholders combined hold about 13 per cent of the American office products maker.

Visentin had previously been hired by Icahn to assist him in fighting Xerox.

Icahn says he believes the company is now in a better position to "restructure its relationship with Fujifilm".

Mr Icahn alluded to tensions with Fujifilm, "our supposed "partner" whose conduct over the past year is more unbelievable than what you see on fictional TV shows like "House of Cards" or "Billions".

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