Xerox abandons $6.1bn sale to Fujifilm to team up with activist investors

Tech firm Xerox pulled out of its $6.1bn sale to Japanese company Fujifilm in the last minute after activist investors Carl Icahn and Darwin Deason argued against the deal.

Xerox and Fujifilm agreed in February that the Japanese company would acquire 50% of Xerox but the two investors, who own 15% of Xerox, said it undervalued the company.

After the deal was called off, Icahn said: "We are extremely pleased that Xerox finally terminated the ill-advised scheme to cede control of the company to Fujifilm".

Xerox said they could not proceed with the deal due to “material deviations” between audited results from its joint venture with Fujifilm and other unaudited statements.

The last minute withdrawal sparked anger from Fujifilm, which said: "We do not believe that Xerox has a legal right to terminate our agreement. We are reviewing all of our available options, including bringing a legal action seeking damages”.

It also said it still believes the takeover is "the best option designed to allow the stockholders of both companies to share the enhanced future value of the combined company."

As consequence of this new deal, Xerox CEO Jeff Jacobson presented his resignation and abandoned the board of the company which will appoint five new members.