Billionaire investor calls Xerox-Fuji deal a "scheme"
(WHAM) - A letter from billionaire investor Carl Icahn released Monday excoriates the recent Xerox-Fujifilm deal, calling it a "scheme."
In a joint statement issued by Icahn and Darwin Deason, the investors say the move "dramatically undervalues Xerox and disproportionately favors Fuji." The letter goes out to argue why the business deal is bad for Xerox and its investors, laying out a multi-paragraph thought process for the reader to consider.
At the conclusion of the letter, Icahn calls for investors to "vote against the Fuji scheme to send a clear message."
The joint venture between Xerox and Fujifilm was announced last month. Fuji will receive a 50.1% controlling share of Xerox in a $6.1 billion deal. The statement says the combined company will be headquartered in both Norwalk, Connecticut and Minato, Tokyo, Japan and will "maintain the iconic 'Xerox' and 'Fuji Xerox' brands within its respective operating regions."
Xerox released a statement in response to the letter. It reads:
“A comprehensive review of strategic and financial alternatives conducted over many months by the independent members of the Xerox Board of Directors, in consultation with independent financial and legal advisors, considered several other options in detail and concluded that the combination with Fuji Xerox is the best path to create value for Xerox shareholders. The transaction provides shareholders with the opportunity to benefit from ownership in a combined company that has enhanced growth prospects and a stronger financial profile to support future value creation, as well as an immediate substantial dividend payment. Xerox remains committed to ensuring the actions it is taking prioritize the best interests of its shareholders, customers, employees and various other stakeholders around the world.”