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Xerox

In the latest business report, now that a judge has issued a preliminary injunction blocking the proposed takeover of Xerox by Fuji, what’s next for the proposed merger?

Good news for job numbers, we've seen another month of solid job growth in the Rochester metro, and Wegmans opens up a two-story store in the Boston region. 

The proposed takeover of Xerox by Fuji has been temporarily blocked by a judge in New York City.

According to Reuters, State Supreme Court Justice Barry Ostrager issued a preliminary injunction on Friday after activist investors sued to try and stop the deal.

The judge is quoted as saying that CEO Jeff Jacobson sought to conclude the deal even though he was advised to end negotiations.

  

Xerox has reopened talks with Fuji about their $6.1 billion dollar agreement for Fuji to acquire Xerox.

Reuters says that the two companies have reopened talks on the merger and are discussing a higher price after Xerox, under pressure from top investors, asked to renegotiate the terms.

Xerox provided this statement to WXXI News on Friday morning:

A new report says that Xerox had been looking at undertaking a search for a potential new CEO last fall, while discussions were going on about a possible deal with Fuji.

There’s another move being made by one of the two activist investors who have been trying to challenge Xerox’s management on various fronts including the recently announced takeover of the company by Fuji.

On Monday, Darwin Deason told Xerox that he is seeking to nominate a full slate of directors at the upcoming annual meeting.

In his letter, Deason says that even though he missed a deadline for making such a move, the Xerox Board has made a series of significant decisions that are material to the stockholders.

Xerox is firing back at the open letter to shareholders released Monday by Carl Icahn and Darwin Deason. Together, they own more than 15% of Xerox, and they issued a multi-page letter highly critical of the recently announced deal that will see Xerox sold to Fujifilm, as part of their existing joint venture, Fuji Xerox.

Icahn and Deason said the deal “dramatically undervalues Xerox and disproportionately favors Fuji.”

Emily Hunt / for WXXI News

Two major Xerox investors have issued an open letter to shareholders of the company which is sharply critical of the recently announced deal that will see Xerox sold to Fujifilm, as part of their existing joint venture, Fuji Xerox.

Carl Icahn and Darwin Deason, who together own more than 15% of Xerox, say the deal “dramatically undervalues Xerox and disproportionately favors Fuji.

It’s a story that began over one hundred years ago in Rochester. It’s also a story that now has an “end” of sorts. For 115 years the story of Xerox was one of an independent company. But on Wednesday, January 31, it was announced that would change.  Fujifilm Holdings, the company that Xerox has had a joint venture with for 56 years, will now take a majority stake in the company. On this edition of Need to Know, we break down what this means for Xerox and for Rochester.

saunders.rit.edu

Among those watching the deal announced Wednesday where Fuji will gain majority control of Xerox as part of a new company called Fuji Xerox is a retired longtime Xerox executive.

Emerson Fullwood worked for Xerox for 36 years, in a variety of roles, including having been president of the company's Worldwide Customer Services Group. The Pittsford resident also is still a member of various corporate boards, including the Vanguard Group and SPX Corporation, and he has been an Executive in Residence at RIT.

On Wednesday morning, Fujifilm Holdings announced that it will take a majority stake in Xerox. The companies have had a joint venture for years. The new business will be called Fuji Xerox, with Fujifilm owning 50.1 percent and Xerox keeping its listing on the NYSE. Fuji Xerox will have dual headquarters in the U.S. and in Japan, and it expects to deliver $1.7 billion in annual cost savings by 2022, with $1.2 billion of that to be achieved by 2020.

Before the merger was announced, Fujifilm said it planned to cut 10,000 jobs at Fuji Xerox to stay competitive. So what will the new business mean for the 3,400 Xerox employees in Rochester? This hour, our guests discuss Xerox’s history in our area and their expectations for its future. Our guests:

  • Randy Gorbman, WXXI News Director
  • George Conboy, chairman of Brighton Securities
  • George Cook, retired University of Rochester professor from the Simon School of Business, and former 30-year Xerox employee

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