Kenji Sukeno, Fujifilm COO
In the aftermath of seeing the $6.1 billion combination between Xerox and Fuji Xerox nixed by Xerox, Fujifilm Holdings executives indicated during an earnings briefing that it plans to sue the Norwalk, CT-based manufacturer, Reuters reported.
“We are currently in talks with lawyers on the schedule for filing the lawsuit and plan to go to court as soon as possible,” Chief Operating Officer Kenji Sukeno told listeners during an earnings briefing last Friday, according to Reuters.
After weeks of back-and-forth negotiations between Xerox and its two largest shareholders, Darwin Deason and Carl Icahn, the company announced an agreement that included the termination of its deal with Fujifilm. As part of the agreement between Xerox and the dissident shareholders, Jeff Jacobson resigned as CEO and was replaced by John Visentin, who was a member of the Deason-Icahn faction.
Xerox told Fujifilm that the previously announced transaction agreement to combine Xerox with Fuji Xerox was being terminated in accordance with its terms due to, among other things, the failure by Fujifilm to deliver the audited financials of Fuji Xerox by April 15.
Xerox and Fujifilm had reached an agreement to merge Xerox with their joint Fuji Xerox venture, giving control to Fujifilm. Deason and Icahn then took Xerox to court, claiming the agreement substantially undervalued Xerox. Further, the shareholders accused Jacobson of conspiring with Fujifilm to reach an agreement that would allow him to remain as CEO.
After weeks of contentious back-and-forth negotiations, including an initial settlement between the shareholders and Xerox that ultimately expired, the two sides made peace. Now, it is Fujifilm that is looking to leverage the court system for satisfaction.
According to Reuters, Sukeno said Fujifilm plans to argue that Xerox had no legal basis to scrap the deal, which he believes is in the best interest of Xerox shareholders. He added that Fujifilm will listen to offers from Xerox’s new board of directors, but will insist that they “benefit Fujifilm shareholders.”
Sukeno also said that Fujifilm is not in a rush to complete a deal with Xerox.
