The too-long running Xerox Fuji Xerox saga approaches conclusion.
Since we wrote in February about the proposed $6.1 billion merger deal between Fuji Xerox and Xerox, announced at the end of January, the story has gone through a series of bizarre twists and turns. Eventually the complex contortions resulted in an end to the proposed deal. Now Fujifilm is suing Xerox for breach of contract. You couldn’t make this stuff up. The machinations of the readily forgotten CEO Jeff Jacobson and the board cronies weaselled into keeping him in post are over. The fiasco of this on again off again deal and Jacobson’s self-interested schemings appear to have been resolved. Darwin Deason, who along with Carl Icahn helped to overturn the deal has said that Jacobson acted “without authorisation to strike the deal to preserve his own job at the expense of shareholder value.”
So the deal is off. Jacobsen and his friends are out of the picture and Icahn and Deason, who together own some 13% of the company, have salvaged Xerox from an ocean of incompetence. They have got their highly competent man in place at the helm and several Xerox board members have been replaced. Jacobsen is somewhere far away. He resigned voluntary and has given up a severance deal valued at $18 million in return from immunity from civil lawsuits related to the Fuji Xerox deal. Cheap at the price maybe. End of story. Mostly.