• G&G May 25 Masthead Web Ad

Court ruling blocks Fuji-Xerox merger

Apr 30, 2018 | 0 comments

The latest twist in the long-running saga of Fujifilm’s merger with Xerox has given cause for celebration to opponents of the deal.

The Democrat & Chronicle reports that the ruling follows a lawsuit by billionaire shareholder Darwin Deason, a constant thorn in the side of Xerox CEO Jeff Jacobson and an outspoken critic of the Fuji-Xerox merger, alongside fellow shareholder Carl Icahn.

The original complaint, which named Fuji, Xerox, Xerox’s Board, and former CEO Ursula Burns all as defendants, and which was filed in the state Supreme Court in Manhattan, New York earlier this year, alleged that the deal – which was formally announced in January – undervalues Xerox and gives too much control to Fuji. It also alleged that Jacobson negotiated the deal despite the wishes of the Board of Directors.

Judge Barry Ostrager granted the temporary injunction after deciding that “the plaintiffs have demonstrated a likelihood of success on the merits of their claim that defendants breached their fiduciary duties as directors in approving the proposed transactions and that Fuji aided and abetted such breach.” 

“I am grateful the court acted to protect the shareholders of Xerox,” declared Deason, following the judgement, but the OEM vowed to “immediately appeal” the decision.

“The Xerox Board undertook a rigorous process to reach its decision to approve the proposed transaction,” read a company statement, “including a comprehensive review of the company’s strategic and financial alternatives, as well as potential transaction structures in its negotiations with Fujifilm over a ten-month period.”

It is the latest twist in the increasingly convoluted and bitter struggle over the Fuji-Xerox deal, which has seen a campaign of condemnation from Icahn and Deason, and repeated rebuttals from Xerox, as the latter considers renegotiations. It remains to be seen if this latest victory for the two shareholders deals a terminal blow to the merger, or if it is just another flashpoint in the ongoing battle.

Search The Recycler

Related Posts

  • Cartridge Web Web Ad June 2025
  • Biuromax June 2025 web ad
  • Keypoint Remanufactured Supplies
  • IR Italiana May 25 web Ad
  • GM Technology Web Ad June 2025
  • CET May 25 Web Ad
  • Integral web ad June 2025 v2
  • Mito Web Ad June 2025
  • CET May 25 Web Ad
  • Mito Web Ad June 2025
  • Integral web ad June 2025 v2
  • GM Technology Web Ad June 2025
  • GM Technology Web Ad June 2025
  • CET May 25 Web Ad
  • Integral web ad June 2025 v2
  • Mito Web Ad June 2025