Fujifilm Responds to Xerox Decision to Call Off Proposed Deal
Reuters reports today that Fujifilm of Japan is disputing Xerox’s termination of its proposed deal with Fujfilm yesterday, and doesn’t think Xerox doesn’t has the legal right to end the deal. The deal would have seen Fujifilm purchase Xerox for $6.1 billion, and Xerox merging with its decades-old joint venture with Fujifilm, Fuji Xerox. Fujifilm would have had a controlling interest in the new combined Xerox-Fuji Xerox.
Fujifilm is also said to be urging the Xerox Board of Directors to re-think the decision.
Yesterday, the Xerox board announced that it would be ending the proposed deal, citing the failure of Fujifilm to “deliver the audited financials of Fuji Xerox by April 15, 2018.” Fuji Xerox’s subsidiary, Fuji Xerox New Zealand and Australia, had been involved with massive revenues over-statements for a period over five years, with the Fuji Xerox subsidiary over-stating revenues by 40 billion yen or approximately $360 million. Since Fuji Xerox is a decades-old joint venture between Xerox and Fujifilm, Xerox determined that its share of the necessary adjustments was approximately $90 million, and that this charge affected its fiscal years 2009 through 2017.
Under the agreement announced yesterday, Carl Icahn consultant and former Hewlett-Packard and IBM executive John Visentin will be the new vice chairman of the Xerox board and new Xerox CEO, and various Xerox board members resigned. See Xerox Calls Off Fujifilm Deal, to Install New Leadership for more information.
- May 2018: Who is Xerox’s New CEO John Visentin?
- May 2018: Xerox Appeals Court Decision that Blocks Xerox-Fuji Xerox Merger
- May 2018: Stunning U-Turn: Xerox Settlement OFF; Current Xerox Board, CEO Remain in Place
- May 2018: In Stunning Reversal, Xerox Yields to Deason and Icahn in Far-Reaching Settlement
- April 2018: Preliminary Injunction Blocks Proposed Xerox-Fujifilm Deal
- April 2017: Fujiflm Agrees to Re-Open Talks on Proposed Xerox-Fuji Xerox Deal
- April 2018: Court Papers Show Conflicted Xerox Board
- April 2018: Xerox, Fujifilm Said to be Renegotiating Proposed Merger; Other Interested Buyer Revealed
- April 2018: Icahn, Deason, Accuse Fujifilm, Xerox CEO of Deceiving Xerox Board
- April 2018: Deason, Icahn, Urge Xerox Partnership with HP, Apple, Others, Monetization of IP
- April 2018: Deason Alleges Xerox CEO Disregarded Board in Pursuing Fujifilm Deal
- March 2018: Icahn Recruits Former IBM, HP Exec in Continuing Bid to Stop Xerox-Fuji Xerox Merger
- March 2018: Xerox-Fuji Xerox Merger May be Good for Xerox Shareholders – But Is It Good for Fujifilm?
- March 2018: Refuting Icahn, Deason, New Xerox Shareholder Letter Lays Out Benefits of Proposed Merger with Fuji Xerox