Fuji says its planning to sue Xerox for pulling out of merger deal

May 18, 2018

Credit www.fujifilmholdings.com

Fujifilm is planning to sue Xerox soon over the company’s decision to pull out of a $6.1 billion deal that would have seen Fuji take over control of Xerox.

According to Reuters and Bloomberg, Fuji’s president made his first public comments Friday  about the announcement made earlier this week by Xerox when it said that it would name a new CEO, John Visentin, to replace Jeff  Jacobson.

Several members of the Xerox board also resigned as part of a settlement with activist investors Carl Icahn and Darwin Deason. The two major shareholders had opposed the deal with Fuji which was announced earlier this year. They said that deal undervalues Xerox.

In comments made by Fujifilm Holdings President Kenji Sukeno during a briefing Friday to talk about the company’s financial results, he is quoted as saying “the contract that ties the two companies together is still valid.” Sukeno reportedly also said that he wants to explain to Xerox shareholders that the merger with Fuji is the only option for Xerox to grow and have a future.

But Sukeno also is quoted as saying that Fuji would consider a new offer from Xerox.

Xerox earlier this week said that its new Board of Directors would begin a process to “evaluate all strategic alternatives to maximize shareholder value.”