Xerox profit slumps as after CEO and board were pushed to resign

Marco Green
May 4, 2018

"Thanks to our efforts and the courage and conviction of Darwin Deason, this is once again an exciting time to be a Xerox stakeholder", Icahn added. They are two of the company's largest shareholders and they objected to a proposed deal that would see Fuji acquiring Xerox, which they felt undervalued Xerox.

"We believe Friday's decision and this agreement mark a watershed moment for corporate governance generally and for Xerox specifically", Icahn said in a statement.

The New York Supreme Court held a hearing on Thursday on an objection by Fujifilm to the agreement.

Judge Barry Ostrager said in his order Friday that Xerox's existing joint venture with would have made it hard but not impossible to pursue another deal that would have required a buyer to provide a cash payment to investors.

"With new leadership in place, we believe Xerox will be much better positioned to take advantage of multiple potential value-enhancing opportunities, including restructuring its relationship with Fujifilm, our supposed "partner", whose conduct over the a year ago is more unbelievable than what you see on fictional shows like House of Cards or Billions", Icahn insisted.

Xerox says that "its Board of Directors recognize the uncertainty caused by the developments of the past several days among the company's investors and other stakeholders", and the company says its board and management team remain focused on "driving continued improvement in financial and operational performance and will consider all options to create value for the company and its shareholders". If the order goes through, Keith Cozza, CEO of Icahn Enterprises, will become Xerox Chairman.

Visentin had previously been hired by Icahn to assist him in fighting Xerox.

Xerox said it chose to settle given the risks and uncertainty of prolonged litigation.

Icahn on Tuesday referred to Fujifilm as a "supposed "partner" whose conduct over the a year ago is more unbelievable than what you see on fictional TV shows like House of Cards or Billions", referring to popular television series about Machiavellian intrigue in the corridors of political power. The move, according to industry experts, could even spell the end of the long-standing Fuji-Xerox joint venture.

Shares in Xerox were flat in after-hours trading, giving the USA company a market value of about $8.2 billion.

Other reports by Click Lancashire

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