Episode 6 – Fujifilm to ask a judge to enforce Fujifilm Xerox merger

0
144

Fujifilm is expected to ask a judge to enforce Xerox’s US$ 6.1 billion merger agreement in the next several days, according to a story in New York’s The Post dated 15 June 2018. An unnamed source told the publication that the move comes despite Carl Icahn’s best efforts to scuttle the deal.

On 31 January 2018, Xerox said it reached a deal to sell 49.9% of the company to FujiFilm for roughly US$ 32 a share — a deal that would net Xerox shareholders of which Icahn and Deason are the largest individual shareholders, a US$ 2.5 billion dividend.

After the deal was announced on 31 January 2018, shareholder activists Icahn and Darwin Deason won control of the Xerox board and have been pushing for a higher offer suggesting that the Xerox is worth US$ 40 a share. However on Friday 15 June 2018, Xerox shares closed at US$ 27.41, down 1.2%.

Xerox, has not yet paid Fujifilm a breakup fee — which would signify that the deal is off. There does not seem to be any talk of Xerox and Fuji reworking the original deal.

Fuji believes little will change until it makes its position known, a source close to the situation reported to The Post. “You won’t have to wait much longer to learn about Fuji’s intentions,” said the source.

This article has been slightly corrected on 19 June 2018 at 958am IST.

LEAVE A REPLY

Please enter your comment!
Please enter your name here