Xerox loses bid for quick appeal against merger with Fujifilm Holdings.
As per a court filing, Xerox Corp has disclosed it has lost a bid for a quick appeal of a decision to block its deal with Fujifilm Holdings. The move is seen as a victory to activist investors Carl Icahn and Darwin Deason.
On Friday, Xerox stated, it would reinstate its ousted CEO and directors following the expiry of an agreement with Icahn and Deason.
As per the latest court filing, Xerox Corp’s appeal will be heard in September 2018.
In a letter to shareholders, Icahn and Deason stated to resolve the ongoing battle, they would consider a bid for the company of at least $40 per share, or a split with Fujifilm which will see Xerox becoming independent.
In February 2018, in a $6.1 billion deal Fujifilm offered to acquire Xerox combining the U.S. company into their existing joint venture.
Icahn and Deason, who had earlier questioned the cost synergies of the Fuji Xerox joint venture agreement, have also opposed the merger saying it significantly undervalues Xerox.
In April 2018, Icahn and Deason suggested alternatives to the merger which includes plans for Xerox to monetize some of its assets.
In their April 2018 letter, Icahn and Deason stated their alternative plan will create a total value of $54 to $64 per share, compared to the around $28 per share in the Fujifilm deal.
Xerox declined to comment on the latest letter from the activist shareholders.