Fujiflm Agrees to Re-Open Talks on Proposed Xerox-Fuji Xerox Deal

The battle between Xerox and activist Xerox investors Carl Icahn and Darwin Deason continues, with Nasdaq and The Wall Street Journal both reporting that Fujifilm has agreed to re-open talks regarding its purchase of a controlling interest in Xerox and the merger of Xerox with Fuji Xerox, a decades-old joint venture between Xerox and Fujifilm.

According to Nasaq, Xerox Board Chairman Robert Keegan told a New York State Court yesterday that Xerox and Fujifilm have reopened discussions about their $6.1 billion agreement for Fujifilm to purchase Xerox, “according to sources inside the courtroom.”

A spokesperson for Fujifilm confirmed it had received a request for a renogtiation from Xerox, but Xerox declined to comment.

Xerox’s Keegan was speaking as part of a court hearing involving Xerox shareholder Deason’s lawsuit, which was filed in March 2018, to block Xerox’s deal with Fujifilm and also nominate directors to Xerox’s board.

Deason has also alleged that last year, Xerox sought to replace Xerox CEO Jeff Jacobson because Xerox was under-performing, and that Jacobson pursued talks with Fujifilm even though the board told him not to do so, and that HP Inc. reached out to Xerox to discuss a possible merger.

Carl Icahn also “tweeted” yesterday that he wished to thank all Xerox shareholders that had reached out to him regarding his detailed presentation that suggests alternatives to the proposed Fujfilm deal.

Proposed Xerox-Fuji Xerox merger:

Xerox shareholders are scheduled to vote on the deal sometime in May 2018.

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