Deason sues Xerox to block deal with Fujifilm


(Reuters) – Xerox Corp (XRX.N) shareholder Darwin Deason asked courts on Tuesday to block the company’s merger with Japan’s Fujifilm Holdings (4901.T), claiming board members at the U.S. photocopier maker had failed in their duty to shareholders.

Deason and fellow shareholder Carl Icahn have been fighting to stop Fujifilm from taking over Xerox in a $6.1 billion deal, saying the transaction “dramatically” undervalued Xerox and “disproportionately” favored Fuji.

Xerox has countered the claims saying that the merger seemed to be the best path for the company after a year of exhaustive examination of a number of alternatives.

Fujifilm plans to combine the U.S. company into their existing joint venture, Fuji Xerox, in which it owns a 75 percent stake. The joint venture has existed in various forms since 1962 and the current structure dates to 2001.

The agreements have an undisclosed “crown jewel” lock-up right that gives Fuji control over Xerox’s…

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