US giant Xerox has scrapped a planned $6.1bn deal with Japan’s Fujifilm, in a settlement with activist investors Carl Icahn and Darwin Deason.
Xerox said last evening that its long-time Japanese partner had failed to deliver audited financials, limiting its ability to consummate the transaction. “Despite our insistence, Fujifilm provided no assurance that it will do so within an acceptable timeframe,” it stated.
Fujifilm was quick to take a combative stance, saying it disputes Xerox’s right to terminate the deal and would look at all options including legal action seeking damages. That prompted Icahn and Deason, who own 15 per cent of Xerox and argued the US firm was being undervalued, to launch a proxy fight.
The two companies had agreed in January to a complex deal that would have merged Xerox into their Asia joint venture Fuji Xerox and given Fujifilm control.
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