Xerox ends merger with Fujifilm in victory for shareholders

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"We are reviewing all of our available options, including bringing a legal action seeking damages", Fujifilm added.

Earlier in January, IBM and Fujifilm announced the conclusion of the transaction, which involves the joining Xerox in the joint venture of the two companies, Fuji Xerox created more than half a century ago.

But Carl Icahn and another major Xerox shareholder opposed the transaction, claiming Fujifilm had undervalued the American company.

The activist investors have also said they are unhappy with the current structure of the joint venture, and settlement creates uncertainty concerning potential changes to a business that accounts for almost half of Fujifilm's revenue.

As part of the settlement, Xerox and Icahn agreed to withdraw their board candidates from the upcoming shareholder meeting, and said the meeting would be postponed.

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Five brand new board administrators have been appointed, " that the united states printer and photocopier manufacturer said in a statement.

"It wouldn't be good if it goes elsewhere".

Icahn said he was happy with the decision.

Separately, Fujifilm said it's acquiring the stakes it doesn't already own in drugmaker and distributor Toyama Chemical from Taisho Pharmaceutical (taisf). Moreover, Xerox no longer builds its own office copiers, instead relying mostly on Fuji Xerox.

Xerox said the board would immediately convene to "evaluate all strategic alternatives to maximize shareholder value".

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Icahn and Deason have said they would consider an all-cash bid of at least $40 per share.

The company also confirmed in a statement that chief executive officer (CEO) Jeff Jacobson will step down as part of the settlement, along with several other board members. "We are therefore also pleased that John Visentin, a tried and true veteran in this area, will be taking the helm".

On May 1, Xerox announced Jacobson was resigning and would be replaced by Visentin. The first settlement agreement was allowed to expire as Xerox came to believe it had flexibility to renegotiate a deal with Fujifilm and also took into account a stock dive that followed the agreement.

"We do not believe that Xerox has a legal right to terminate our agreement", Fujifilm said in a statement.

Xerox XRX announced that it notified Fujifilm that the previously announced transaction agreement to combine Xerox with Fuji Xerox is being terminated in accordance with its terms due to the failure by Fujifilm to deliver the audited financials of Fuji Xerox by April 15, 2018 and the material deviations reflected in the audited financials of Fuji Xerox.

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