Since our article on Xerox’s decision to end their merger deal with Fujifilm, there have been a few important updates in what is now turning into a bitter saga. Here’s everything we know so far.
19th June 2018 – Fujifilm File Lawsuit Against Xerox for over $1 billion (approx. £763 million)
In a strong reaction towards Xerox for abandoning the proposed merger, Fujifilm file a lawsuit for damages imposed by the cancellation of the agreement. The charges were submitted to the Southern District of New York, with the claims that Xerox was in breach of it’s agreements and had terminated its merger plans without any legitimate reasoning. During the lawsuit proceedings, Fujifilm commented on it’s outrage at the merger being nullified due in part to the rumored interference from Carl Icahn and Darwin Deason. “It is inconsistent with shareholder democracy to allow Carl Icahn and Darwin Deason, minority shareholders with only 15% of Xerox’s shares, to dictate the fate of Xerox.” In response, Xerox claim they are “extremely confident” that they had the right contractually to pull out of the agreement made.
22nd June 2018 – Xerox Announce New President and COO
After the resignation of Xerox CEO Jeff Jacobson and his replacement, John Vesentin, being announced in the previous month, Xerox assign a new COO. Steve Bandrowczak, a former COO and CIO of Alight Solutions, joins Xerox with several key responsibilities including:
- Developing and executing a global operations strategy in the company’s business support functions.
- Overseeing product and service delivery, customer billing and information technology within the company.
- Securing global procurement and real estate.
On the announcement being made, current Xerox CEO, John Visentin, added his thoughts on what he felt would be a positive step in building more effective and efficient ways to serve their customers. “Steve brings a track record of growing business and enhancing competitiveness through a combination of innovation technology and operational vigor. His breadth of experience across the product and service delivery chain will be essential to generating value for our shareholders and building more effective and efficient ways to serve our customers.”
25th June 2018 – Xerox Officially Respond to the Fujifilm Lawsuit
In an open letter composed to Fujifilm CEO Shigetaka Komori, Xerox make an official response to the allegations being made related to the breakdown of the merger. Addressing the claims that the merger was terminated without any legitimate reasoning, Xerox CEO John Visentin, notes in his letter that “Fujifilm should realise that the internal accounting issues at Fuji Xerox were a result of their mismanagement, which made it impossible to close the announced transaction. The lawsuit is nothing more than a desperate and misguided negotiating ploy to save their takeover attempt.”
Pouring further fuel on the fire, Visentin also confirms that Xerox will not attempt to renew the Technology Agreement with Fuji Xerox once it expires in 2021.
What will happen next in this volatile and now bitter business feud between two image industry giants?
Whatever developments occur, we’ll be sure to keep you posted.