Episode 4 – Xerox board walks away from Fujifilm deal

Episode 4 – Xerox board walks away from Fujifilm deal
Keith Cozza

The Fujifilm takeover of Xerox, which was proposed in January 2018, and contested by investors Carl Icahn and Darwin Deason in the courts, is off. Xerox said the deal was being terminated because of Fujifilm’s failure to enter into negotiations on improved terms. The former board of Xerox said in a statement released on 13 May 2018, “Over the past several weeks, the Xerox Board has repeatedly requested that Fujifilm immediately enter into negotiations on improved terms for a proposed transaction. Despite our insistence, Fujifilm provided no assurance that it will do so within an acceptable timeframe.”

Fujifilm currently owns 75% of Fuji Xerox, a joint venture launched more than 50 years ago. Under the proposed deal announced in January, Fuji Xerox would buy back that stake from Fujifilm for around US$ 6.1 billion and Fujifilm would use those proceeds to buy 50.1% of new Xerox shares.

Former CEO and board member Jeff Jacobsen has resigned and five new board members, nominated by Icahn and Deason, have joined the new board including incoming chairman Keith Cozza and John Visentin as chief executive officer. The two investors, who together control about 13% of Xerox stock, have said they would be willing to consider any offers for the company of US$ 40 a share or more.