Sources say on Monday, June 18, 2018, a Japanese Multinational photography and imaging company, Fujifilm Holdings Corp charged an American global corporation Xerox for $1 billion, faulting the printer for succumbing to pressure from activist investors Darwin Deason as well as Carl Icahn in abandoning a proposed $6.1 billion merger. Both the investor-owned around 15-percent Xerox shares.
Fujifilm said, “It is inconsistent with shareholder democracy to allow Carl Icahn and Darwin Deason, minority shareholders with only 15 percent of Xerox’s shares, to dictate the fate of Xerox.”
On May 13, 2018, the acquisition was brawled in a settlement with Icahn and Deason when Xerox ready to install several new directors, also replace Jeff Jacobson as chief executive with technology executive John Visentin.
Xerox owes it a $183 million charge for ending the merger, Fujifilm says. Xerox likewise referred to uncertain accounting issues as motivation to end the merger.
Fujifilm expected that the acquisition would deliver $1.7 billion saving cost, however, $1 billion of new revenue annually.
Fujifilm further said, “Xerox has recently been subject to the whims of activist investors Carl Icahn and Darwin Deason, who, notwithstanding their minority ownership of Xerox shares, has yanked the Xerox Board in more directions than can be counted.”
Deason is still pursuing a lawsuit accusing Fujifilm of aiding and abetting breaches of fiduciary duty by Xerox’s old board. Fujifilm has appealed an April 27 and its counterclaims on June 14. Sources stated that Xerox shares closed down 17 cents on the New York Stock Exchange.