Xerox to Restart Talks with Fujifilm on Acquisition Bid

May 10, 2018

New York- U.S. copier maker Xerox Corp. has said it will restart negotiations on the acquisition bid by Japan's Fujifilm Holdings Corp..

According to a letter to its shareholders disclosed on Wednesday, Xerox will review the 6.1-billion-dollar acquisition agreement reached with Fujifilm in late January, aiming at "superior terms" to the deal.

On April 27, a court in the state of New York accepted a complaint by major Xerox shareholders opposed to the deal and ordered a suspension of the takeover process.

While appealing the ruling last week, Xerox plans to review the terms of acquisition, including the price, in order to obtain shareholder support and realize the acquisition at an early date.

Fujifilm's bid to acquire Xerox had taken twists and turns.

In January, Fujifilm said it had agreed to merge subsidiary Fuji Xerox Co. and Xerox and acquire more than half of the shares in the U.S. copier maker.

But major shareholders of Xerox, such as activist investor Carl Icahn, complained about the acquisition price and called on other shareholders to support the replacement of the company's management team at a shareholders' meeting.

On May 1, Xerox said that it has reached a settlement with the major shareholders and that Xerox executives, including Chief Executive Officer Jeff Jacobson, who wrapped up the agreement with Fujifilm, would resign.

The acquisition deal was thought likely to be scrapped, but Fujifilm filed an objection to the settlement.

Following the move, Xerox reversed course and said on May 3 that the settlement agreement was no longer valid as the court withheld approval of the settlement and that its management team would remain in place. On May 4, Xerox appealed the court ruling suspending the acquisition process.

On Monday, Icahn made a specific demand for the first time, saying in an open letter to other Xerox shareholders that an all-cash bid at a minimum of 40 dollars per share "would require our serious consideration."

The figure was about 40 pct higher than Xerox's closing share price of 28.46 dollars on Monday. Jiji Press