Technology

Xerox shareholders Icahn, Deason urge company to sell itself to rivals

(Reuters) – Xerox Corp shareholders Carl Icahn and Darwin Deason said on Tuesday the U.S. company should seek to sell itself to one of its rivals or a private equity firm.

Xerox could combine with a competitor that is actually willing to pay a significant premium, or Japan’s Fujifilm Holdings themselves would step up and offer a full buy-out on fair terms, the shareholders wrote in an open letter. (bit.ly/2Hvx51N)

The activist shareholders, who own a combined 15 percent of the U.S. printer and copier maker, have repeatedly urged shareholders to oppose the Fuji-Xerox deal.

FILE PHOTO: The logo of Xerox company is seen on a building in Minsk, Belarus, March 21, 2016. REUTERS/Vasily Fedosenko/File Photo

Icahn and Deason said last week the agreement dramatically undervalued Xerox, and criticized the deal structure calling it “tortured, convoluted”.

“Carl Icahn and Darwin Deason’s letter is consistent with their misguided campaign to undermine Xerox’s combination with Fuji Xerox,” Xerox said in a statement on Tuesday.

The company reiterated that among the range of strategic options, combination with Fuji Xerox is the superior path forward for Xerox.

On Jan. 31, Fujifilm said it was set to take over Xerox in a $6.1 billion deal and combine it into their existing joint venture, Fuji Xerox.

Shares of Xerox were up nearly 1 percent.

Reporting by Supantha Mukherjee and Sonam Rai in Bengaluru; Editing by Bernard Orr

Our Standards:The Thomson Reuters Trust Principles.

Related posts

Intel shares hit dotcom-era highs after bumper results

news

China blames Canada for difficulties in relationship, demands Huawei executive be freed

news

Music streaming company Spotify has 60 million paying subscribers

news

Leave a Comment