Categories Earnings

Fujifilm merger at stake as Xerox CEO steps down

Following weeks of cold war with major shareholders Carl Icahn and Darwin Deason triggered by a deal with Japan’s Fujifilm, Xerox (XRX) CEO Jeff Jacobson has now agreed to step down from his post. The shareholder duo had earlier strongly opposed the company’s decision to sell a majority of itself to Fujifilm for $6.1 billion, stating that the deal was undervalued.

Icahn and Deason, who together hold about 15% ownership in Xerox, even demanded the ouster of the CEO who ignored their suggestions. Deason had challenged the merger by filing a lawsuit seeking to block the deal. To resolve this legal battle, the company reached an agreement with its shareholders, according to which, the CEO and a few board members, as well as Chairman Robert Keegan would resign from their roles.

Following weeks of cold war with major shareholders Carl Icahn and Darwin Deason triggered by a deal with Japan’s Fujifilm, Xerox (XRX) CEO Jeff Jacobson has now agreed to step down from his post.

Xerox made this settlement after a US judge temporarily blocked the merger with Fujifilm based on the lawsuit filed by Deason. This latest twist weakens the prospects of the merger, as the board will be reportedly replaced by members who are representatives of the two shareholders. The new board members will evaluate various other strategies with regards to the proposed merger, which may also include a termination of the deal.

Chief executive of Icahn Enterprises (IEP), Keith Cozza, would be roped in as the Chairman of Xerox and John Visentin, who was earlier associated with Icahn’s vast empire, was chosen as the CEO.

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