Xerox Facing Lawsuit From Shareholder To Block Fujifilm Merger
Xerox shareholder Darwin Deason is suing the company asking the courts to block the upcoming merger between Xerox and Fujifilm saying the company’s board failed shareholders by approving the deal that ‘undervalues the company’.
Reuters reports Deason and another shareholder Carl Ichan control 15 per cent of Xerox says this deal ‘disproportionately favours Fujifilm’.
A spokesperson for Xerox says, “Mr. Deason’s allegations are without merit and the company will vigorously defend itself. After having considered all strategic alternatives available to the company, Xerox’s Board of Directors remains steadfast in its belief that the combination with Fuji Xerox is the best path to create value for the company and its shareholders.
“It is unfortunate that Mr. Deason is seeking to interfere with Xerox shareholders’ right to decide and is relying on meritless legal claims. Xerox has fully disclosed the joint venture agreements, and the company will respond to Mr. Deason’s legal claims through the appropriate legal channels in due course.”
The acquisition was announced earlier this month with Fuji Xerox to buy back its 75 per cent stake of Fujifilm for approximately US$6.1bn. Fujifilm will then use that income to purchase 50.1 per cent in shares.
The deal was to be completed around August.
More to come.