Navigation

Xerox shareholder sues to block Fuji takeover deal

Jiji Press NEW YORK (Jiji Press) — Darwin Deason, the third-largest shareholder in Xerox Corp., said Tuesday that he filed a lawsuit in New York the same day to prevent Japan’s Fujifilm Holdings Corp. from acquiring a majority stake in the U.S. printer and copier maker.

The day before launching the legal battle, Deason, who holds some 6 percent of outstanding shares in Xerox, said in a joint statement with top owner Carl Icahn, holding a 9 percent stake, that the acquisition deal agreed on by Fujifilm and Xerox “dramatically undervalues Xerox and disproportionately favors Fuji.”

Claiming that Xerox board members have “overseen the systematic destruction” of the company, he called on other shareholders not to let Fujifilm “steal this company from us.”

Last month, Fujifilm announced it had agreed with Xerox to obtain a 50.1 percent stake in the U.S. firm and combine it and the Fuji Xerox Co. unit to create a new company.

In a complaint filed with New York State Supreme Court, Deason called the deal a “fraudulent scheme” and demanded it be scrapped.

Directors of the Xerox board “should be compelled to go back to the drawing board, free Xerox from Fuji’s deal-restrictive ‘crown jewel’ lock-up, which the company still has the legal right to do, and pursue a fair, transparent, and equitable bidding process that is truly beneficial to Xerox’s shareholders,” the complaint said.

Responding to Deason’s allegations, Xerox said in a statement that its board of directors “remains steadfast in its belief that the combination with Fuji Xerox is the best path to create value for the company and its shareholders.”Speech

Click to play

0:00/-:--

+ -

Generating speech. Please wait...

Become a Premium Member to use this service.

Become a Premium Member to use this service.

Offline error: please try again.