Fujifilm CEO says the company may walk away from potential Xerox merger if there's no progress soon

Jun 7, 2018

Credit www.fujifilmholdings.com

Fujifilm Holdings says the company may consider giving up its proposed $6.1 billion merger with Xerox if there is no progress on talks with the company within the next several months.

The Wall Street Journal and Reuters are both reporting that Fujifilm’s CEO, Shigetaka Komori, told reporters on Thursday that it’s time for the two companies to come together to lower costs, but he also indicated Fujifilm could also end the negotiations if a deal can’t be reached in about six months or so.

Fujifilm had reached a deal in January with Xerox to take majority control of that company. But Xerox scrapped the deal last month in a settlement with activist investors Carl Icahn and Darwin Deason.

In May, Xerox also announced a new CEO and several new board members as part of that settlement.

Ichan and Deason have opposed the Fujifilm takeover, saying that it undervalues Xerox. But they have indicated they would consider an all-cash bid for the company of $40 a share.

Komori is quoted as saying that Fujifilm is not opposed to considering any new proposal from the new Xerox board if it is beneficial for both companies, but he also indicated the $40 per share figure is “too high.”

Fujifilm earlier had threatened legal action over Xerox’s decision to pull out of the merger deal announced in January.

Xerox had no comment on the latest remarks from the Fujifilm CEO.