Two major Xerox investors have issued an open letter to shareholders of the company which is sharply critical of the recently announced deal that will see Xerox sold to Fujifilm, as part of their existing joint venture, Fuji Xerox.
Carl Icahn and Darwin Deason, who together own more than 15% of Xerox, say the deal “dramatically undervalues Xerox and disproportionately favors Fuji.
The two investors urge Xerox shareholders to “not let Fuji steal this company from us,” and they say there is still tremendous opportunity for the stockholders to realize values if they can bring in the right leadership.
A Xerox spokesman issued this response:
“A comprehensive review of strategic and financial alternatives conducted over many months by the independent members of the Xerox Board of Directors, in consultation with independent financial and legal advisors, considered several other options in detail and concluded that the combination with Fuji Xerox is the best path to create value for Xerox shareholders. The transaction provides shareholders with the opportunity to benefit from ownership in a combined company that has enhanced growth prospects and a stronger financial profile to support future value creation, as well as an immediate substantial dividend payment. Xerox remains committed to ensuring the actions it is taking prioritize the best interests of its shareholders, customers, employees and various other stakeholders around the world.”
The Fuji Xerox deal must still be approved by shareholders later this year.