- General
- June 18, 2018
- 4 minutes read
Xerox sued by camera company Fujifilm for $1 Billion over failed acquisition
image credit : Flickr/Open Grid Scheduler Multi-national technology company Xerox which is very notable for its print and digital document…
image credit : Flickr/Open Grid Scheduler
Multi-national technology company Xerox which is very notable for its print and digital document solutions has been embroiled into a legal battle regarding the botched sale of Fujifilm which is notable for its cameras and photography technology which agreed to be acquired for $6.1 Billion by Xerox who then backed out of the deal on the 13th of last month.
Fujifilm is accusing Xerox of succumbing to pressure by activist investors Carl Icahn and Darwin Deason who have combined 15% shareholdings and board seats in the company and opposed the purchase of the digital imaging company after an acquisition deal had been reached.
Fujifilm is now seeking $1 Billion in punitive damages and also a $183 million termination fee owed to it for breaking the legal agreement due to opposition from Billionaire investor Carl Icahn and Darwin Deason who is the largest individual shareholder in the company and became one after selling his IT services company Affiliated Computer Services Inc for $6.4 Billion to Xerox in 2010.
The court case dubbed Fujifilm Holdings v. Xerox, 18-cv-5458 has just been filed in U.S. District Court in Manhanttan, New York and addresses the issues involved in the failed acquisition which was meant to see Xerox merge with Fujifilm’s Asia business unit and see Fujifilm hold 50% of Xerox’s common stock.
Fujifilm accuses Xerox of “intentional and egregious conduct” in backing off from the acquisition due to the actions of the two investors who are notable for making and pressuring changes in Xerox’s board and management even with the 15% they together own which is considered a minority stake.
Xerox’s former CEO Jeff Jacobson stepped down last month after long disputes with the activist investors and was replaced by John Visentin who was favoured by both investors, Icahn Enterprises CEO was also named the new Chairman of the company after the board management shakeup which saw several executives depart the company.
Both companies and parties involved will be scheduled to appear in court soon with a settlement to be dished out at a later time, We would now see how this legal dispute will end up in soon time and if the companies would agree to a fair settlement concerning this stalled acquisition.
