The new Xerox board will meet immediately to discuss alternatives to the proposed Xerox-Fuji Xerox merger.
Tagged: Carl Icahn
Deason argues that Xerox CEO Jeff Jacobson “acted without authorization” to negotiate a deal with Fujifilm, a deal that is is said to have “preserved his job at the expense of shareholder value.
On Wednesday, Xerox also said that Xerox shareholders should disregard information from Icahn and Deason, stating the two are conducting a “highly disingenuous campaign” that distorts and omits key facts about Xerox and the proposed merger.
Xerox shareholders will vote on the proposed merger of Xerox with Fuji Xerox sometime next month.
On April 17th, activist investors Carl Icahn and Darwin Deason, seeking to stop Fujifilm’s acquisition of Xerox for $6.1 billion and the creation of a new combined Xerox-Fuji Xerox, released a detailed presentation, Rescuing and Revitalizing an American Icon, that presents alternatives to the proposed deal.
In the letter, the two investors, who together hold approximately 15 percent of Xerox shares, state that “Both the substance of the proposed value-destroying transaction and the conflict-tainted process by which it was hatched are an insult to long-suffering Xerox shareholders and make a mockery of well-established corporate governance norms.”
In Deason’s complaint, he refers to the president of another company making an inquiry about “combining” with Xerox.
In this most recent letter, Icahn argues that there is “tremendous value in a stand-alone Xerox with new management.”
Refuting Icahn, Deason, New Xerox Shareholder Letter Lays Out Benefits of Proposed Merger with Fuji Xerox
Specifically, the revenue and cost synergies identified through this combination include developing a more complete and competitive product portfolio, with enhanced offerings in areas where Xerox is currently underpenetrated such as high-speed inkjet and low-end A3;
Icahn sold his Manitowoc shares for about $32 to $34 each. After Trump’s tartiff announcement, shares of Manitowoc fell to about $26.
“Hope is not a strategy. We cannot just hope for multiple expansion. We cannot just hope for synergies. We cannot just hope that the massive Fuji Xerox accounting scandal will not result in substantial additional liabilities for Xerox. We cannot just hope that Fuji that will treat us fairly once they are in control of our company.”
Deason, along with billionaire activist investor Carl Icahn, have sought to derail Xerox’s proposed merger with Fuji Xerox, with Fujifilm of Japan having a controlling 50.1 percent of shares, with current Xerox CEO Jeff Jacobson serving as president of the new company. Xerox shareholders will vote on the proposed merger at an upcoming shareholder meeting in May 2018.
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Last week, we focused on the continuing battle between Xerox leadership and two activist investors, Carl Icahn and Darwin Deason,...
This week, the Xerox-Fuji Xerox merger saga continued with a back-and-forth campaign designed to sway Xerox shareholders to either vote...
The two investors published a fifth letter to Xerox shareholders, again seeking to urge them to reject the proposed Fuji Xerox deal.
Icahn and Deason determined to prevent sale of Xerox.