April 28 (UPI) — A New York State Supreme Court judge has placed a temporary hold on Xerox Corp.’s planned merger with Fujifilm.
The American global photocopying company had planned to merge with the Japanese photography company in a January deal worth more than $6 billion. Under the deal, Fujifilm would own 50.1 percent of the merged company and Xerox’s Chief Executive Officer Jeff Jacobson would lead the merged company. Xerox shareholders would receive a $2.5 million cash dividend, or about $9.80 per share.
However, a judge’s order late Friday night temporarily blocks that deal until final ruling in the case.
Billionaires Carl Icahn and Darwin Deason, among Xerox’s biggest investors, have worked together to fight the deal, the WSJ reported, with Deason filing the suit to block the deal in February.
“I am grateful the court acted to protect the shareholders of Xerox,” Deason said is a Democrat and Chronicle report following the court ruling Friday.
Judge Barry Ostrager explained in a copy of the order for a preliminary injunction obtained by the Democrat and Chronicle that Jacobson was conflicted. The facts “clearly show that Jacobson, having been told on Nov. 10 that the board was actively seeking a new CEO to replace him, was hopelessly conflicted during his negotiations of a strategic acquisition transaction that would result in a combined entity of which he would be CEO,” Ostrager said in the order.
Back in February, Xerox company had issued a statement calling Deason’s claims meritless.
“Mr. Deason’s allegations are without merit and the company will vigorously defend itself,” Xerox stated.