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How Carl Icahn and a Billionaire Partner Blocked Xerox’s Merger with Fujifilm

A proposed $6.1 billion deal between Xerox and Fujifilm was blocked in the US last month. Two of the Xerox’s biggest shareholders, Carl Icahn and Darwin Deason, who own 15% of the photocopier and printer company between them, led the opposition to the merger. They requested an injunction to the deal on the grounds that the merger seriously undervalued Xerox and asked that nominations to the board of the company be reopened.

The presiding Judge, Barry Ostrager, who ruled against the merger, said that Jeff Jacobson, the Chief Executive of Xerox, had tried to continue with the merger despite advice from within Xerox to the contrary. Explaining his decision Ostrager noted: “The facts abduced at the evidentiary hearing clearly show that Jacobson, having been told on Nov. 10 that the Board was actively seeking a new CEO to replace him, was hopelessly conflicted during his negotiation of a strategic acquisition transaction that would result in a combined entity of which he would be CEO.”

After the verdict Xerox said that they would appeal the court decision as “the company strongly believes that its shareholders should be allowed to exercise their right to vote on the transaction and decide for themselves.” Fujifilm expressed similar disappointment, stating: “We strongly believe that all Xerox shareholders should be able to decide for themselves the operational, financial, and strategic merits of the transaction.” In contrast, Deason expressed his relief that the ruling had protected the company’s shareholders.

XBM Photocopiers are specialist suppliers of office print equipment to businesses throughout the UK. With more than 30 years of experience in the sector we are able to work with the leading providers of printing equipment to secure companies the best possible print management solutions for their needs. For more information or to get a quote please contact us on 0113 2533342.

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