Fujifilm Hits Out After Xerox Scraps Merger

Fujifilm Hits Out After Xerox Scraps Merger

Earlier this week, Xerox settled a long-running leadership battle and pulled out of a planned merger with Fujifilm, but the Japanese imaging giant is having none of it.

In a public statement, Fujifilm said it was now planning to file a damages lawsuit against Xerox “as soon as possible" for scrapping the $6.1 billion takeover agreement.

Speaking at an earnings briefing following the group’s full-year results, Fujifilm COO Kenji Sukeno confirmed to analysts that the firm was currently in talks with lawyers.

He stated that Xerox had “no legal right” to unilaterally terminate the deal, which he said was in the best interests of Xerox shareholders.

Xerox bowed out of the proposed Fujifilm merger this week, citing the accounting scandal currently underway at its Asia-Pacific joint venture Fuji Xerox.

In ditching the agreement, Xerox yielded to pressure from activist investors Carl Icahn and Darwin Deason who have fought to block the deal since it was first proposed. The termination also resulted in the resignation of several members of the Xerox leadership team, including CEO Jeff Jacobson – who had been a key figure in the negotiations with Fujifilm.

In Tokyo today, Sukeno added that if the newly appointed Xerox board made any new proposals, Fujifilm would only consider them if they benefited its shareholders.

He concluded, somewhat ominously: “We don’t need to be in a rush to close this deal. We are not bound by time.” - (OPI)