Billionaire Darwin deason has accused the CEO of Xerox, Jeff Jacobson that he was actively negotiating the deal with Fujifilm, despite the prohibition by the Board of Directors of the company.
According to the billionaire, CEO of Xerox, sought to obtain from representatives of Fuji guarantees that he will continue to lead the company after the acquisition. Thus, it defended its own interests and not the interests of the shareholders, said in a lawsuit.
As follows from the correspondence attached to the case, Jacobson and representatives of Fuji agreed “to fight as a team against a common enemy”, which meant another well-known investor Carl Icahn (he and Disano owns about 16% of the company’s shares, and they jointly opposed the deal and has publicly called for a change of CEO).
While Jacobson has called on the leadership of Fuji to make it clear to the Board of Directors of Xerox that it is ready to merge only if he will remain at the head of the company, writes The Wall Street Journal.
Meanwhile, in November last year, the Chairman of the Board of Directors of Xerox Robert Keegan told Jacobson that he could be fired due to weak financial performance. In addition, Keegan allegedly banned the Director negotiate further with Fuji. The company began the search for a new CEO, but stopped after a formal proposal from Fuji, made in late November. A few days later the Board of Directors has decided to retain the post of General Director for Jacobson.
Keegan on Sunday said that the Jacobson was “all powers in order to negotiate with Fujifilm”. According to him, deason in his claim distorted the facts.
Xerox and Fuji made a deal in late January. By its terms, Xerox will be part of a joint venture of the two companies, Fuji Xerox created more than half a century ago. Xerox shareholders will receive a total of $2.5 billion in the form of special dividends and will remain the owners of 49.9% of the joint venture. Jacobson will become the head of Fuji Xerox.
Now Icahn and deason seek the resignation of the Board of Directors, writes the WSJ. If they manage to do it, they can appoint the Board representatives, who can vote for the cancellation or renegotiation of its terms.
Shares of Xerox are cheaper by 0.6% in pre-trading on Monday. Over the past three months, the capitalization of the company fell by 14%, to $7,17 billion
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