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Fujifilm plans suit against Xerox over failed $6.1B merger

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Fujifilm plans suit against Xerox over failed $6.1B merger

FUJIFILM Holdings Corp. is preparing to sue Xerox Corp. for scuttling the companies' $6.1 billion merger agreement, Reuters reported, citing Fujifilm COO Kenji Sukeno.

"We are currently in talks with lawyers on the schedule for filing the lawsuit and plan to go to court as soon as possible," Sukeno said May 18 at an earnings briefing.

In January, the two companies agreed to combine Xerox with their Fuji Xerox joint venture, giving Fujifilm control. But Xerox pulled out of the deal May 13 after reaching a settlement with activist investors Carl Icahn and Darwin Deason, who opposed the transaction. After the settlement, six Xerox directors, including CEO Jeff Jacobson, left the company.

Sukeno said Fujifilm will claim that Xerox had no legal right to unilaterally terminate the agreement, and that the deal is in the best interest of Xerox shareholders. Deason, who sued Xerox to block the deal, had insisted that the transaction would have undervalued Xerox and disproportionately favored Fujifilm.

Sukeno added that Fujifilm will only consider proposals from the new Xerox board if they benefit Fujifilm shareholders, according to Reuters. "We don't need to be in a rush to close this deal. We are not bound by time," he said.