There were some new developments Monday in the ongoing situation with Xerox and two of its major shareholders, Carl Ichan and Darwin Deason.
The two activist investors released a letter saying that they would consider an all-cash bid for the company at a minimum of $40 a share.
This is after a lawsuit brought by Deason last month resulted in a preliminary injunction from a judge in New York City which temporarily blocks the proposed takeover of Xerox by Fuji, a deal with Deason and Icahn feels undervalues the company.
In their open letter to shareholders, Icahn and Deason said they also see the “possibility of similar or better value in a standalone Xerox with John Visentin at the helm as CEO with the support of a new conflict-free board.”
The letter from the two activist investors said they are also aware of a potential rival bid for Xerox from buyout firm Apollo Global Management, and said, "we are confident that other potential buyers are waiting in the wings to kick the tires," but Icahn and Deason don't think that will happen under the company's current management.
Last week Xerox had initially announced a settlement with Icahn and Deason, that would have seen the resignation of CEO Jeff Jacobson and 6 members of the Board of Directors. But that agreement was allowed to expire after Xerox said certain legal stipulations were not met, and the current management is still in place.
Icahn and Deason walso posted a $150 million bond to preserve two preliminary injunctions issued by the court in the litigation brought by Xerox.
According to Reuters and Bloomberg, Xerox lost its bid for a quick appeal of the judge’s decision to block the deal with Fuji, and reportedly, that appeal is not expected to be heard until September.
Xerox is not commenting on the letter to shareholders from Icahn and Deason.
