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Renegotiations and rebuttals from Xerox

April 23, 2018

The OEM has defended its CEO Jeff Jacobson, as the company reportedly looks to renegotiate the Fuji Xerox merger.

Following the lawsuit brought by major shareholder Darwin Deason this month, in which it was alleged the merger between Fujifilm and Xerox was negotiated against the wishes of the OEM’s Board of Directors, the company has rejected the accusations.

According to MarketWatch, although it acknowledges that Jacobson was instructed to halt the negotiations in November, Xerox has clarified that following that conversation, the CEO received the Board’s backing to carry on the talks. It adds that after an improvement in company performance in December, “the board unanimously approved the deal and the decision to stick with Jacobson.”

Yet despite this confirmation from the company, Reuters reports that talks have begun in an attempt to renegotiate the Fuji-Xerox deal, which has been the subject of a prolonged – and increasingly vitriolic – campaign of criticism by both Deason and his fellow shareholder Carl Icahn, who claim it undervalues the OEM and disproportionately favours Fujifilm.

According to Reuters, the renegotiations follows comments from the companies’ lawyers, made at a court hearing last Thursday. Deason and Icahn have put forward a range of alternatives for Xerox, although it is surely unlikely they will be looked upon favourably, following their persistent attacks on Jacobson and the Board.

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