Xerox terminates merger agreement with Fujifilm

Xerox terminates merger agreement with Fujifilm

Amid pressure from Icahn and Deason, the company had said last week it intends to resume discussions with Xerox on a potential combination on "superior terms", but it had not received a new proposal from the American company.

Your selection ends months of infighting, for example a significant boardroom clearout.

In Tokyo, Fujifilm disputed Xerox's "unilateral decision".

As previously reported, past year Fujifilm discovered accounting irregularities within two subsidiaries of its joint-venture Fuji Xerox Australia New Zealand operations.

Xerox added that Jeff Jacobson had resigned from his role as the company's CEO, along with five board members who were replaced by five new members.

Six committee members were also interrogate, paving the way for two executives close to Mr Icahn to become set up from the functions of executive and chairman. Robert Keegan, Charles Prince, Ann Reese, William Hunter and Stephen Rusckowski have resigned from the board.

Xerox said in its statement that its new board will meet immediately and "begin a process to evaluate all strategic alternatives to maximize shareholder value".

John Visentin is appointed the new CEO and vice-chairman of the board.

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However, Xerox said it had repeatedly requested new negotiations be opened between the two businesses on the deal. "Despite our perseverance, Fujifilm has not given assurances that intends to do so within a reasonable time", the message reads Xerox. With that behind us and new shareholder-focused leadership in place, today marks a new beginning for Xerox.

"It's not bad for Fujifilm that Xerox ended the deal", Tomoichiro Kubota, a market analyst at Matsui Securities said by phone.

Icahn and Deason have said they would consider an all-cash bid of at least $40 per share.

"The transaction can not reasonably be expected to be completed under these circumstances, particularly given the court's injunction of the transaction and the lack of shareholder support for the transaction on current terms, as well as the unresolved accounting issues at Fuji Xerox", the company asserts in a statement.

"The board also considered the potential instability and business disruption during a proxy contest. We are therefore also pleased that John Visentin, a tried and true veteran in this area, will be taking the helm". "Xerox is fortunate to have someone with his experience and preparation to lead it through this exciting and transformative time".

Icahn and Deason have opposed the Fujifilm transaction from the start.

According to CNN, Fujifilm said in a statement that it's reviewing all its options, including legal action.

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