Technology company Xerox has ended its contentious sale to Japan's Fujifilm later attaining a bargain with activist investors Carl Icahn and also Darwin Deason.
A spokesperson said: "Fujifilm disputes Xerox's unilateral decision to terminate the transaction". "Despite our perseverance, Fujifilm has not given assurances that intends to do so within a reasonable time", the message reads Xerox.
Together, Icahn and Deason reportedly own over a tenth of the ~US$8 billion company.
As part of a deal proposed in January, Xerox would first merge with a joint venture it operates with Fujifilm in Asia, and the Tokyo-based company would ultimately take over slightly more than 50% of the combined entity.
It says CEO Jeff Jacobson and several other executives will be replaced.
Fujifilm said it would urge the new board of Xerox to reconsider.
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According to Bloomberg, John Visentin is expected to become the new CEO of the firm while Keith Cozza, CEO of Icahn Enterprises, is expected to become Chairman. Fujifilm has said it's appealing a USA court injunction blocking the takeover.
Icahn said the agreement marked "a new beginning" for Xerox, while Deason said the company would now be positioned "to conduct a true, robust strategic alternatives process".
While a new order at Xerox could lead to the business seeking a higher purchase offer, Fujifilm said it will investigate the move and potentially seek damages. The Xerox Board believes that the transaction can not reasonably be expected to be completed under these circumstances, particularly given the court's injunction of the transaction and the lack of shareholder support for the transaction on current terms, as well as the unresolved accounting issues at Fuji Xerox. Both praised Xerox's decision to pull out of the deal.
The activist investors have also said they are unhappy with the current structure of the joint venture, and settlement creates uncertainty concerning potential changes to a business that accounts for almost half of Fujifilm's revenue.
Icahn said: "We are extremely pleased that Xerox finally terminated the ill-advised scheme to cede control of the company to Fujifilm". He also claimed in the lawsuit that the company's board breached its fiduciary duties.
Xerox said it will back out of its merger deal with Fujifilm as it reached a new settlement with two of its biggest shareholders, the latest twist in a monthslong tug of war over the future of the iconic American company, The Wall Street Journal reports.