Xerox, Fujifilm reopen deal discussions - sources

Xerox, Fujifilm reopen deal discussions - sources

By Liana B. Baker

NEW YORK (Reuters) - Xerox Corp Chairman Robert Keegan told a New York state court on Thursday that Xerox and Fujifilm Holdings Corp <4901.T> have reopened talks about their $6.1 billion agreement for the Japanese company to acquire the U.S. print and copy machine maker, according to sources inside the courtroom.

The sources declined to be named because they were not authorized to talk to the media.

Xerox and Fujifilm are discussing increasing the financial consideration for Xerox shareholders, according to a separate source close to the situation.

Xerox declined to comment. A spokeswoman for Fujifilm confirmed the company had received a request for a renegotiation from Xerox.

Keegan was speaking as part of a court hearing connected to Xerox shareholder Darwin Deason's lawsuit, filed in March, to block Xerox's deal with Fujifilm and also nominate directors to Xerox's board.

Under the agreement announced in late January, Fujifilm would take over Xerox and combine the U.S. company into their existing joint venture to gain scale and cut costs as demand for office printing declines.

The deal is opposed by top Xerox shareholders Deason and activist investor Carl Icahn, who say that it unfairly favours Fujifilm.

In Deason's lawsuit, he argues that he has the right to nominate directors to Xerox's board despite missing a deadline because the current board had made significant decisions and disclosures to stockholders after the deadline for nominations.

Deason could not be reached for comment on Thursday.

Icahn also tweeted on Thursday in support of Deason's plan for Xerox to pursue alternatives to its deal with Fujifilm.

The hearing will resume on Friday in New York.

(Reporting by Liana B. Baker in New York; Editing by Richard Chang)

This story has not been edited by Firstpost staff and is generated by auto-feed.


Updated Date: Apr 27, 2018 05:05 AM

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