Xerox flip-flops on US$6.1 billion Fujifilm flip after investor flap

As expected, Xerox under its activist-investor-controlled board has decided to exit its deal with Fujifilm. Carl Icahn and Darwin Deason, who between them controlled 15 per cent of Xerox stock, objected almost immediately to a US$6.1bn deal they said left them as passive investors in a Fuji subsidiary. The deal involved a …

[Mark 85]

Ah.. "activist" investors... like sharks on a feeding frenzy. It's not about what might be good for the company, the customers, etc. but only what's good for them. One would expect that sometime later this year or early next year, they'll be ripping Xerox apart and selling off the assets.

One thing noticeable about Icahn...he likes the kill and the ripping apart of companies. Probably more than any profit it's the power he likes. Maybe he should be labeled a "destructivist" investor. If he invests in your company, you're doomed.

[Matt Ryan]

If others saw more value in Xerox they could have bought shares and stopped Icahn. They didn't, the market spoke - the value wasn't there, and now he gets to do what he wants.

[strum]

>the value wasn't there

Don't confuse value with price.

[Anonymous Coward]

Icahn has legal actchunz?

"Since you can't just rip up a contract you don't like without reason, the Xerox announcement cited..."

...something that is obviously a contrived excuse made in bad faith as an excuse to back out of an already-agreed-to commitment because the new management don't agree with it. One which might or might not fly when Fujifilm takes them to court (as they've intimated they are considering doing).

[J Elmer]

Xerox is a fine company that has established itself in the printing industry after losing its uniqueness as an office copier/printer company. Like IBM it is surviving by re-making itself. In a competitive industry such as printing Xerox has been successful because of maintaining high customer satisfaction. It does not have a unique technology that would command a high market value or be of interest to a company such as HP. However for Fuji Photo, Xerox represents a very, very unique opportunity to enter the US market with a company they know and trust and with which they could market additional Fuji Photo products they have or acquire. It would be a major market expnsion for Fuji Photo. Hopefully Mr Icahn and Mr Deason will realize this and reach a mutually beneficial agreement with Fuji Photo.