This Week in Imaging: Xerox Shareholders Should Vote on Fujifilm Deal; Industry Financials; More

Photo credit: Kathy Wirth

Amid all the back-and-forth on the proposed Xerox-Fujifilm deal between the Xerox Board of Directors and Carl Icahn and Darwin Deason (Icahn and Deason wrote not one but two public letters to Xerox shareholders this week), the Xerox board’s plea that all Xerox shareholders should vote on the matter – something they were supposed to do this month – seems the most sensible. After all, can Icahn and Deason – who together hold about 15 percent of total Xerox shares – be considered the only Xerox shareholders competent enough to make a decision on the matter? And yet, with Deason’ litigation and subsequent temporary court injunction, the shareholders’ vote has been indefinitely postponed. This makes Icahn and Deason’s opinion on the matter the de facto decision – until and if Xerox obtains a successful appeal on the matter.

On the other hand, looking back, what probably didn’t help matters one bit for Xerox was a boast by Fujifilm CEO Shigetaka Komori’s to the Nikei Asian Review in February, shortly after the proposed deal was announced, that Fujifilm wouldn’t be spending a penny, as the transaction wouldn’t involve any cash payment by Fujifilm. Instead, Fujiflm would instead make the purchase using the unrealized profit on its 75-percent interest in Fuji Xerox, Xerox’s joint venture with Fujifilm – something which seemed to infuriate Icahn. Nor has the accounting scandal at Fuji Xerox New Zealand and Australia helped matters, with, for instance, Xerox forced to take a $28 million for Fuji Xerox New Zealand losses.

The current status appears to be one of limbo, with a New York State judge postponing a hearing on Xerox’s recent appeal that seeks to undo the court’s temporary injunction blocking the Fujifilm deal. During that time, we can probably expect more antics from Icahn and Deason, who have taken to calling Xerox leadership “#lameduckboard,” and more seriously, according to the Nikei Asian Review, Icahn is now warning Xerox shareholders that a proposed takeover by Fujifilm could somehow lead to bankruptcy, stating that the accounting scandal at Fuji Xerox New Zealand and Australia, which resulted in losses of some $450 million, could grow in size.

Meanwhile, this week, the Xerox board explained why they let that settlement expire, and also appeared to state that it was renegotiating the Fujifilm deal. There was lots more, so be sure to check out our stories on this.

Icahn and Deason continue to accuse the Xerox board of “wrongdoing” that’s damaging Xerox, but both Icahn and Deason themselves have done and continue to do considerable harm to Xerox, a fact that competitors are likely more than happy to see.

This Week in Imaging

Xerox Appeals Court Decision that Blocks Xerox-Fuji Xerox Merger

Ichan, Deason Pen Letter to Xerox Shareholders Urging End to Fujifilm Deal

Deason, Icahn Post $150 Million Bond to Keep Temporary Injunction Against Fujifilm Deal

Judge Blocks ‘Quick’ Appeal from Xerox

Xerox to Negotiate More Favorable Fujifilm Deal

Icahn, Deason Reject Xerox Peace Offering, Denounce Leadership

New Xerox Iridesse Production Press Produces Unique Iridescent Colors and Specialty Embellishments

Private-Equity Firm to Acquire Pitney Bowes’ Production Mail-Printing Business

Brother Reports Fiscal Year, Fourth-Quarter Results

OKI Reports Results for Fiscal Year

Kodak Reports First-Quarter 2018 Results

Nuance Reports Second-Quarter 2018 Results

HP 3D-Printing Solutions Now Available in Mexico

Canon Continues Patent-Infringement Campaign with New U.S. Lawsuit

Konica Minolta Brings Artificial Intelligence Platform to Workplace Hub

Ricoh Brings Tablet-Like Control Panel to New A4 Copier/MFPs

Lexmark Printers, Copier/MFPs Achieve Hardcopy Common Criteria Certification

HP Launches #TransformYourBusiness Campaign to Promote HP Indigo Digital Press Portfolio

Carolina Wholesale Group Acquires Gilpez Office Products

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