Xerox sued for fraud over acquisition by Fujifilm

Business 2/13/2018, 4:06 PM
Xerox sued for fraud over acquisition by Fujifilm

Xerox Corporation is being sued by its third-largest shareholder for alleged fraud related to Fujifilm Holdings Corp's acquisition of the company. The shareholder, Darwin Deason, claims the deal will allow Fujifilm to "control Xerox's intellectual property and manufacturing rights in the $36 billion Asia-Pacific market in the event Xerox were to sell to another suitor." According to the lawsuit, the "crown jewel lock-up right" had been concealed from Deason and other shareholders for 17 years.

"The self-interested director defendants, however, ignored the opportunity or deliberately chose not to terminate the joint venture agreements. Had the director defendants terminated the joint venture agreements, they would have been able to engage in a fair and equitable bidding process and achieve a fair value and control premium for Xerox shareholders," the lawsuit states.

In January, Fuji and Xerox struck a $6.1 billion agreement to merge Xerox with the two companies' joint venture Fuji Xerox Co. Ltd. The acquisition will give the Japanese company the control of 50.1% of shares.

Breaking the News / NP

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