Activists stop $6B takeover of Xerox

Xerox Corp. shares fell after activist investors Carl Icahn and Darwin Deason prevailed in their bid to stymie Fujifilm Holdings Corp.’s $6.1billion (U.S.) takeover of the U.S. office equipment supplier and pushed out the company’s chief executive officer.

The stock fell as much as 10 per cent Monday, and closed down more than 4 per cent, at $28.87.

Jeff Jacobson, the CEO who oversaw the initial deal with Fujifilm, will step down under a settlement backed by the two shareholders, Xerox said in a statement Sunday.

Keith Cozza, the CEO of Icahn Enterprises, will become chairperson, while John Visentin is expected to take over as chief executive officer, the U.S. copier company said. Icahn and Deason own a combined13 per cent of Xerox.

The agreement leaves the two activist investors with a firmer handle on the company after a tumultuous boardroom battle. Icahn and Deason, who opposed the transaction from the start as undervalued, must now find other bids or compel Fujifilm, which owns 75 per cent of an office equipment joint venture with Xerox, to raise its offer substantially.

It also marks another big win for billionaire investor Icahn, who has refocused his energy on shaking up corporate targets in the past few months after spending part of last year advising U.S. President Donald Trump on his regulatory agenda.