Fujifilm May Drop Xerox Acquisition Plan: Chairman

June 8, 2018

Tokyo- Fujifilm Holdings Corp. may scrap its already-derailed plan to acquire major U.S. printer and copier maker Xerox Corp. if the current stalemate continues for as long as half a year, Chairman and Chief Executive Officer Shigetaka Komori said Thursday.

The Japanese and U.S. companies reached an acquisition agreement in January, but Xerox unilaterally canceled the deal last month due to opposition from major shareholders.

In an interview with Jiji Press and other news organizations, Komori insisted that the acquisition contract was made under proper procedures and is still valid. "We'll adamantly demand Xerox implement the contract," he stressed.

At the same time, Komori admitted that abandoning the acquisition is another option. He said: "It's not indefinite. Normally, we'll have no choice (but to drop the plan) if nothing happens in a few months to half a year."

The January agreement calls on Fujifilm to buy a 50.1 pct stake in Xerox for 671 billion yen after Xerox pays special dividends worth some 1,000 yen per share to existing shareholders.

Major Xerox shareholders including prominent investor Carl Icahn have criticized the deal as underestimating the corporate value of Xerox.

Komori defended the offered acquisition value as fair, claiming that the figure was calculated together with third-party analysts.

He denied any chances of directly negotiating with Icahn and other Xerox shareholders on acquisition terms, but added that Fujifilm would be ready to discuss proposals from Xerox if they appear beneficial to both sides. Jiji Press