The Recycler
  • Ninestar Masthead banner July 2021
  • Biuromax Web ad May 2021
  • ECs TEmp AD
  • Katun March Web Advert 2021
  • Nubeprint Online 425x90

Xerox saga becomes increasingly convoluted

Xerox saga becomes increasingly convoluted

May 8, 2018

With every day seeming to bring a fresh twist in this increasingly complex tale, developments are coming thick and fast, among them the filing of an appeal by Xerox and new open letters published by Deason and Icahn.

Very briefly, at the beginning of May 2018, it looked as if embattled Xerox and its two major shareholders, Carl Icahn and Darwin Deason, were ready to bury the hatchet and resolve the increasingly bitter conflict that has been rumbling on for weeks. A settlement agreement was signed on 1 May 2018, and several key figures on the Xerox board prepared to step aside in order to put an end to the shareholders’ proxy fight.

However, the peace was short-lived, and now events seem to be taking an increasingly vitriolic turn, with Xerox announcing that the agreement had expired, which meant that the existing Board would remain in place.

Then on 4 May 2018 Xerox announced that it has taken an appeal from the decision enjoining the Fuji Xerox combination. Xerox said that it “strongly believes that the decision is contrary to well-established New York law vesting the Board of Directors of Xerox with the business judgment to enter into the transaction agreement with Fujifilm and that the decision to approve should rest with Xerox’s shareholders, not the Court.” 

The OEM went on to say that “the appeal disputes the court’s finding that the Xerox Board breached their fiduciary duties in approving the transaction. To the contrary, the Xerox Board unanimously authorised the transaction after months-long discussions and deliberations, and based on its good faith judgment that the transaction represented the value-maximising alternative for the company’s shareholders.”

Icahn and Deason responded swiftly with an open letter penned to shareholders, in which they described the OEM’s termination of the agreement as an “inexplicable turn of events” and stated that the “brazen self-interest” of the company “defies description”.

The pair then wrote another letter, published on 7 May 2018, in which they explained that they were posting a $150 million (€126.3 million) bond “to preserve the two preliminary injunctions issued by the New York State Supreme Court in the litigation brought by Darwin Deason against them.”

In the letter, they described the Xerox board as a “lame duck” and said that they intended to see that the OEM’s CEO and other board members were “held fully and personally liable for their misconduct.”

They also announced their intention to “see that Fujifilm is held fully liable as an aider and abettor of the continuing breaches of fiduciary duties by those directors.”

The saga continues.

 

 

 

 

Categories : Around the Industry

Tags : Appeal Carl Icahn Darwin Deason Fuji Xerox Fujifilm USA Xerox

  • Aster AUGUST Web banner 2021
  • Mito September 2021 Web Advert
  • GPI September 2021 Advert
  • Apex web ad May 2021 version 2
  • Armor May banner Ink
  • IR Italiana Web ad January 2021
  • GM Technology web banner September 2021
  • Static Web ad July 2021
  • Ninestar Big & Bold July 2021
  • CTS Toner Supplies Web ad April 2021
  • HYB Web ad February 2021
  • Ohana July 2021 web advert
  • ITP Web ad January 2021
  • CET Web ad September 2021
  • PW Dubai December Ad
  • PCL Web ad January 2021
  • Adter Recruitment Web ad April 2021
  • ITP Web ad January 2021
  • CTS Toner Supplies Web ad April 2021
  • Adter Recruitment Web ad April 2021
  • PW Dubai December Ad
  • Ohana July 2021 web advert
  • PCL Web ad January 2021
  • CET Web ad September 2021
  • HYB Web ad February 2021
  • Ohana July 2021 web advert
  • PCL Web ad January 2021
  • CET Web ad September 2021
  • CTS Toner Supplies Web ad April 2021
  • ITP Web ad January 2021
  • PW Dubai December Ad
  • Adter Recruitment Web ad April 2021
  • HYB Web ad February 2021

The Recycler, Wittas House, Two Rivers, Station Lane, Witney, OX28 4BH, United Kingdom | Tel: +44 (0) 1993 899800 | Fax : +44 (0) 1993 226899
©2006-2021 The Recycler - Terms & Conditions - Privacy Policy including cookie use

Web design Dorset | Websites by Mark