Xerox CEO quits in win for Carl Icahn

The CEO of Xerox is quitting and the company's plan to be taken over by Japan's Fujifilm has been thrown into doubt....

Posted: May 2, 2018 11:28 AM
Updated: May 2, 2018 11:28 AM

The CEO of Xerox is quitting and the company's plan to be taken over by Japan's Fujifilm has been thrown into doubt.

Xerox said in a statement late Tuesday that it's reached a deal with activist investors Carl Icahn and Darwin Deason, who have been trying to kill the Fujifilm deal and push out CEO Jeff Jacobson.

Under the agreement, Jacobson and six other current Xerox board members, including Chairman Robert Keegan, are stepping down to allow representatives of Icahn and Deason to take control of running the iconic US printer and copier company.

The Xerox board said it decided to strike a deal with the activist investors after a US judge on Friday temporarily blocked the company's planned merger with Fujifilm. The ruling was the result of a lawsuit brought by Deason in February challenging the merger.

Related: Carl Icahn: Don't let Fujifilm 'steal' Xerox

The agreement between the two sides Tuesday will end the litigation and a battle over board seats that was set to take place at the next Xerox shareholders' meeting, the company statement said.

The new board plans to meet "immediately" to consider "terminating or restructuring Xerox's relationship with Fujifilm and the proposed transaction with Fujifilm," according to the statement.

But it's set to face a fight from the Japanese company, which said in a statement Wednesday that it has "serious concerns" about the settlement between Xerox and the activist investors.

Under the plan that Xerox and Fujifilm announced in January, the US company's operations would be merged with those of Fuji Xerox, a joint venture between the two firms. The multibillion-dollar deal would leave Fujifilm holding 50.1% of Fuji Xerox, with Xerox shareholders owning the rest.

Related: Fujifilm moves to take control of Xerox

Icahn and Deason argued that it "dramatically undervalues" Xerox and would be the "final death knell" for the US company. The two investors, who together hold around 15% of Xerox stock, accused the company's board of overseeing "the systematic destruction of Xerox."

Fujifilm said Wednesday it believes the Xerox board "has an obligation" to stick to the deal the companies agreed in January, adding that it will appeal Friday's court ruling that halted the merger.

Fujifilm shares dropped more than 5% in Tokyo on Wednesday.

Icahn welcomed the court ruling and Tuesday's agreement with the Xerox board, saying they "mark a watershed moment for corporate governance generally and for Xerox specifically."

Keith Cozza, the CEO of Icahn Enterprises, is set to become the new chairman of Xerox, according to the company statement. And John Visentin, an IT industry veteran who worked as a consultant to Icahn Enterprises during the battle over Xerox, is expected to be the new CEO.

Huntsville
Clear
70° wxIcon
Hi: 87° Lo: 68°
Feels Like: 70°
Florence
Clear
69° wxIcon
Hi: 88° Lo: 66°
Feels Like: 69°
Fayetteville
Few Clouds
70° wxIcon
Hi: 89° Lo: 69°
Feels Like: 70°
Decatur
Clear
68° wxIcon
Hi: 86° Lo: 67°
Feels Like: 68°
Scottsboro
Overcast
73° wxIcon
Hi: 88° Lo: 68°
Feels Like: 73°
WAAY Radar
WAAY WAAY-TV Cam
WAAY Temperatures

Alabama Coronavirus Cases

Confirmed Cases: 19387

Reported Deaths: 676
CountyConfirmedDeaths
Mobile2341123
Jefferson1927105
Montgomery190544
Tuscaloosa85316
Marshall7149
Franklin5939
Lee56334
Shelby53619
Tallapoosa43566
Butler43121
Walker3973
Elmore38110
Chambers36326
Madison3594
Unassigned3144
Morgan3141
Baldwin2969
Dallas2963
Lowndes26912
Etowah26512
DeKalb2603
Autauga2485
Coffee2401
Sumter2369
Houston2275
Pike2231
Bullock2197
Colbert1972
Hale19210
Russell1870
Barbour1831
Marengo1796
Lauderdale1752
Calhoun1693
Cullman1631
Wilcox1587
Choctaw15310
Clarke1492
St. Clair1372
Randolph1288
Dale1250
Marion12511
Talladega1215
Pickens1215
Limestone1100
Chilton1081
Greene955
Macon944
Winston920
Jackson863
Henry842
Covington831
Crenshaw803
Escambia793
Bibb761
Washington746
Blount641
Lawrence510
Monroe492
Geneva450
Perry430
Conecuh421
Coosa401
Cherokee383
Clay282
Lamar280
Fayette160
Cleburne151

Tennessee Coronavirus Cases

Confirmed Cases: 25664

Reported Deaths: 408
CountyConfirmedDeaths
Shelby5669127
Davidson563869
Rutherford139829
Trousdale13944
Hamilton99219
Sumner95146
Lake8350
Bledsoe6131
Williamson59511
Robertson5425
Putnam5256
Tipton4673
Wilson4598
Knox4455
Out of TN4264
Bedford3024
Montgomery2873
Rhea2170
Hardeman2040
Bradley1742
Madison1732
Macon1713
Loudon1650
Unassigned1610
McMinn14614
Fayette1442
Cheatham1400
Dickson1210
Cumberland1202
Maury1081
Sevier1002
Blount933
Coffee810
Washington760
Monroe743
Wayne640
Gibson631
Sullivan602
Lauderdale601
Dyer590
Hickman590
Franklin541
Greene522
Unicoi490
Obion481
Hamblen442
Marion441
Anderson422
DeKalb390
Smith361
Lawrence350
Marshall341
White340
Hawkins342
Haywood342
Overton330
Grundy321
Cannon320
Henry320
Lincoln300
Jefferson290
Carroll281
Meigs270
Warren270
Weakley260
Perry240
Hardin222
Cocke210
Sequatchie200
Polk190
Carter191
Jackson190
Johnson190
Campbell181
Morgan180
Roane170
Humphreys161
Crockett163
Grainger150
Henderson150
McNairy150
Giles140
Stewart140
Scott130
Chester120
Fentress120
Claiborne120
Houston80
Clay80
Benton71
Decatur50
Moore50
Van Buren40
Union40
Lewis30
Pickett30
Hancock10

 

 

Community Events