Menu
Top Xerox shareholders urge vendor to sell itself to rivals

Top Xerox shareholders urge vendor to sell itself to rivals

Xerox could combine with a competitor that is actually willing to pay a significant premium, the shareholders wrote in an open letter

Carl Icahn

Carl Icahn

Xerox Corp shareholders Carl Icahn and Darwin Deason said U.S. company should seek to sell itself to one of its rivals or a private equity firm.

Xerox could combine with a competitor that is actually willing to pay a significant premium, or Japan's Fujifilm Holdings themselves would step up and offer a full buy-out on fair terms, the shareholders wrote in an open letter.

“For 17 years, Xerox withheld (we believe illegally) the agreements governing the Fuji Xerox joint venture – agreements the company now claims permanently prevent (for all intents and purposes) anyone other than Fuji from buying Xerox,” the open letter stated.

“But the truth is that if this ostrich board of directors would simply take their heads out of the sand and do a deeper dive into the advice being given to them by Jeff Jacobson (who just wants a bigger job) and its financial advisors (who just want a huge fee), then they would see that there are viable alternatives to the proposed Fuji scheme.

“Possibly the best alternative would be to consolidate with or sell to one of our competitors (or to a private equity firm who would optimise the business and return it to growth) who we believe would pay a large premium once they truly understood they could get around the Fuji Xerox joint venture agreements and eventually operate unfettered in Asia using the Xerox trademark and Xerox’s many patents.”

The activist shareholders, who own a combined 15 per cent of the U.S. printer and copier maker, have repeatedly urged shareholders to oppose the Fuji-Xerox deal.

Icahn and Deason said last week the agreement dramatically undervalued Xerox, and criticised the deal structure calling it "tortured, convoluted".

"Carl Icahn and Darwin Deason's letter is consistent with their misguided campaign to undermine Xerox's combination with Fuji Xerox," Xerox said in a statement on Tuesday.

The company reiterated that among the range of strategic options, combination with Fuji Xerox is the superior path forward for Xerox.

On 31 January, Fujifilm said it was set to take over Xerox in a US$6.1 billion deal and combine it into their existing joint venture, Fuji Xerox.

Shares of Xerox were up nearly one per cent.

(Reporting by Supantha Mukherjee and Sonam Rai in Bengaluru; Editing by Bernard Orr)


Follow Us

Join the newsletter!

Or

Sign up to gain exclusive access to email subscriptions, event invitations, competitions, giveaways, and much more.

Membership is free, and your security and privacy remain protected. View our privacy policy before signing up.

Error: Please check your email address.

Tags Xerox

Featured

Slideshows

Leading female front runners of the Kiwi ICT industry honoured at 2019 WIICTA

Leading female front runners of the Kiwi ICT industry honoured at 2019 WIICTA

Reseller News has honoured the leading female front runners of the New Zealand ICT industry at the 2019 Women in ICT Awards (WIICTA) in Auckland. The awards recognised standout individuals across six categories, spanning Entrepreneur, Rising Star, Shining Star, Community, Technical and Achievement. Photos by Gino Demeer.

Leading female front runners of the Kiwi ICT industry honoured at 2019 WIICTA
Reseller News kicks off awards season in 2019 with Judges' Lunch

Reseller News kicks off awards season in 2019 with Judges' Lunch

The 2019 Reseller News Innovation Awards has kicked off with the Judges Lunch in Auckland with 70 judges in the voting panel. The awards will reflect the changing dynamics of the channel, recognising excellence across customer value and innovation - spanning start-ups, partners, distributors and vendors. Photos by Christine Wong.

Reseller News kicks off awards season in 2019 with Judges' Lunch
Reseller News welcomes industry figures for 2019 Hall of Fame lunch

Reseller News welcomes industry figures for 2019 Hall of Fame lunch

Reseller News welcomed 2018 inductees - Chris Simpson, Kendra Ross and Phill Patton - to the third running of the Reseller News Hall of Fame lunch, held at the French Cafe in Auckland. The inductees discussed the changing landscape of the technology industry in New Zealand, while outlining ways to attract a new breed of players to the ecosystem. Photos by Gino Demeer.

Reseller News welcomes industry figures for 2019 Hall of Fame lunch
Show Comments