Xerox found “material deviations” between the audited Fuji Xerox financial statements and unaudited statements that was provided to it earlier.
In a significant development, Xerox Corp stated it was in the process of ending its planned $6.1 billion deal with Fujifilm Holdings Corp and had reached a settlement with activist investors Carl Icahn and Darwin Deason.
Xerox also said, Jeff Jacobson, its Chief Executive Officer, had resigned and that John Visentin is expected to replace him at the helm. As part of the reshuffle, Xerox also replaced five directors in its board.
“We are extremely pleased that Xerox finally terminated the ill-advised scheme to cede control of the company to Fujifilm,” said Icahn in a statement. “We have often said that the most important person at a company (by far) is the CEO. We are therefore also pleased that John Visentin, a tried and true veteran in this area, will be taking the helm.”
Officials from Fujifilm were not immediately available for comment.
Xerox is now set to be up for sale through an auction.
In a statement, the U.S. company stated, its new board would meet immediately and “begin a process to evaluate all strategic alternatives to maximize shareholder value.”
Xerox cited Fujifilm’s failure to provide audited financial statement by the April 15 deadline as the reason for walking away from the proposed Fuji Xerox deal.
Xerox also found “material deviations” between the audited Fuji Xerox financial statements and unaudited statements that was provided to it earlier.
As part of the settlement, Xerox and Icahn agreed to withdraw their board candidates from the upcoming shareholder meeting, and said the meeting would be postponed.
The directors that would now be leaving Xerox are, Robert J. Keegan, William Curt Hunter, Ann N. Reese, Charles Prince and Stephen H. Rusckowski.
Nicholas Graziano, Jonathan Christodoro, John Visentin, Keith Cozza and Scott Letier will now be joining its biard.