Fujifilm objects to Xerox settlement with shareholders

May 4, 2018

Tokyo (Jiji Press)--Fujifilm Holdings Corp. has filed an objection to Xerox Corp.'s settlement of a dispute with major shareholders who oppose Fujifilm's bid to acquire the US copier maker.

The objection was filed with a court in the state of New York on Wednesday.

The court is expected to hear claims of Fujifilm and Xerox on Thursday to examine whether to approve the settlement.

Xerox said Tuesday it has reached the settlement with activist investor Carl Icahn and businessman Darwin Deason. Chief Executive Officer Jeff Jacobson and six other board members will resign upon court approval of the settlement and a new management team will review the takeover agreement with Fujifilm, including the possibility of canceling it.

If the court approves the settlement, Fujifilm will be forced to revise its acquisition plan for Xerox drastically.

Fujifilm has said its acquisition deal with Xerox is a legally binding contract, adding that it wants the new management team to honor it.

The court has ordered a temporary suspension of the acquisition procedures. Fujifilm plans to appeal the decision. Jiji Press