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Report: Fuji wins an appeal in a legal battle with Xerox

Oct 17, 2018

Credit www.fujifilmholdings.com

Fuji has won an appeal in its legal battle with Xerox over a deal that was scrapped earlier this year. That deal would have seen Fuji take majority control of Xerox.

In May, Xerox pulled out of the $6.1 billion dollar deal with Fuji in a settlement with activist investors Carl Icahn and Darwin Deason.

According to Reuters, a New York State Appellate Court has found that Xerox’s former CEO Jeff Jacobson had neither misled or misinformed the company’s board of directors when that deal was originally proposed.

The ruling said that the board had engaged outside advisors and discussed the proposal on numerous occasions prior to voting to present it to shareholders.

Fuji released a statement saying that it stands by its view that the original planned merger remains the best option for the shareholders of both companies. There was no immediate comment from Xerox.

The deal proposed earlier this year prompted Icahn and Deason to launch a proxy fight. The settlement ended with Jacobson leaving the company and a new CEO and several new board members put in place.

Analysts have said that the only way for Fuji to get Xerox interested in renewing efforts for a deal is for Fuji to raise its offer.