Japan: Fujifilm sues Xerox for US$1b after aborted merger

Japanese technology giant Fujifilm said Tuesday, June 19, it was suing US firm Xerox, seeking more than US$1 billion in damages after a merger between the two firms was scrapped last month in large part due to the activities of two Xerox shareholders.

Fujifilm denounced what it called a “unilateral decision to terminate without legitimate cause” that terminated the planned merger that had been announced in January.

Billionaires, Carl Icahn and Darwin Deason together owned 15% of Xerox shares, and said the merger undervalued the Norwalk, Connecticut-based company.

“It is inconsistent with shareholder democracy to allow Carl Icahn and Darwin Deason, minority shareholders with only 15 percent of Xerox’s shares, to dictate the fate of Xerox,” Fujifilm said in a statement.

The merger was scrapped on May 13 when Xerox, in a settlement with Icahn and Deason, agreed to install several new directors and replace Jeff Jacobson as chief executive with technology executive John Visentin.

Full Content: Reuters

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