WXXI AM News

Xerox and Fuji have reopened talks about merger

Apr 27, 2018

  

Xerox has reopened talks with Fuji about their $6.1 billion dollar agreement for Fuji to acquire Xerox.

Reuters says that the two companies have reopened talks on the merger and are discussing a higher price after Xerox, under pressure from top investors, asked to renegotiate the terms.

Xerox provided this statement to WXXI News on Friday morning:

Following testimony by the Chairman of its Board of Directors in court on April 26, 2018, Xerox confirmed that it has entered into discussions with Fujifilm regarding a potential increase in consideration to be received by Xerox shareholders in the company’s proposed combination with Fuji Xerox. Consistent with its commitment to shareholder engagement, Xerox has been meeting with shareholders since the anouncement of the transaction. Xerox has listened to their input and carefully considered their views. There can be no assurance that these discussions will result in any amendment to the transaction agreement between the parties.”

Reuters also quotes Fuji as saying they have received a request for renegotiation from Xerox.

The deal is being opposed by two of Xerox’s top shareholders, Carl Icahn and Darwin Deason, who feel the deal unfairly favors Fuji.  The deal must still be approved by shareholders.

Icahn and Deason have also been pushing for major changes at Xerox.  The company reports first quarter earnings on Thursday, May 3.