Fujifilm sues Xerox for more than US$ 1 billion over failed merger

The Fujifilm Xerox saga this week – Episode 7

372
Xerox
Carl Icahn

Japanese firm Fujifilm filed a lawsuit in a district court in New York on Monday 18 June 2018, seeking “punitive damages for Xerox’s intentional and egregious conduct” in cancelling the fairly complex agreement that would have merged all of Xerox in the two companies’ existing joint venture entity Fuji-Xerox. Fujifilm wants more than US$ 1 billion from Xerox for backing out of a merger between the two companies.

The US$ 1 billion amount Fujifilm is seeking is significantly higher than the US$ 183 million ‘termination fee’ the companies agreed on in case one of them walked away from the agreement. Fujifilm is arguing that Xerox has deprived it of the benefits of the mutually agreed deal and is also demanding that Xerox be ordered to pay the US$ 183 million termination fee.

In the works for the past year, the deal was and announced at the end of January 2018. Since then, Xerox investors Carl Icahn and Darwin Deason who own 15% of Xerox stock between them, have gone to court to block the deal and vociferously opposed it, saying it undervalued the company. Xerox shares have recently come down from US$ 30 to about US$ 27 a share while Icahn and Deason have consistently indicated that they are looking for a value of US$ 40 a share.

After the disruption of the deal Xerox has seen a huge change in its board composition with CEO Jeff Jacobson the main architect of the deal stepping down along with five other board members. Xerox has said in a statement that it was “extremely confident” about its right to back out of the deal. It said it would seek remedies for Fujifilm’s “mismanagement and misconduct.”

Fujifilm’s statement says that it continued to believe that its takeover of Xerox was the “only correct solution” for investors in both companies. “It is inconsistent with shareholder democracy to allow Carl Icahn and Darwin Deason, minority shareholders with only 15% of Xerox’s shares, to dictate the fate of Xerox,” the company added.

Here are the links to other articles from Fujifilm-Xerox saga:
Episode 6 – Fujifilm to ask a judge to enforce Fujifilm Xerox merger

Episode 5- Fujifilm to sue Xerox to enforce acquisition agreement

Episode 4 – Xerox board walks away from Fujifilm deal

Xerox investor’s lawsuit targets CEO Jeff Jacobson

Icahn and Deason overturn Xerox acquisition by Fujifilm

Fujifilm to take over Xerox in a US$ 6 billion deal

In 2024, we are looking at full recovery and growth-led investment in Indian printing

Indian Printer and Publisher founded in 1979 is the oldest B2B trade publication in the multi-platform and multi-channel IPPGroup. It created the category of privately owned B2B print magazines in the country. And by its diversification in packaging, (Packaging South Asia), food processing and packaging (IndiFoodBev) and health and medical supply chain and packaging (HealthTekPak), and its community activities in training, research, and conferences (Ipp Services, Training and Research) the organization continues to create platforms that demonstrate the need for quality information, data, technology insights and events.

India is a large and tough terrain and while its book publishing and commercial printing industry have recovered and are increasingly embracing digital print, the Indian newspaper industry continues to recover its credibility and circulation. The signage industry is also recovering and new technologies and audiences such as digital 3D additive printing, digital textiles, and industrial printing are coming onto our pages. Diversification is a fact of life for our readers and like them, we will also have to adapt with agility to keep up with their business and technical information needs.

India is one of the fastest growing economies in nominal and real terms – in a region poised for the highest change in year to year expenditure in printing equipment and consumables. Our 2024 media kit is ready, and it is the right time to take stock – to emphasize your visibility and relevance to your customers and turn potential markets into conversations.

– Naresh Khanna

Subscribe Now

LEAVE A REPLY

Please enter your comment!
Please enter your name here