(Reuters) – Investor Carl Icahn and Darwin Deason, the biggest- and third-largest shareholders of Xerox Corp, jointly plan to push the printer and photocopier maker to explore options, including a sale of the firm, the Wall Street Journal reported on Sunday.
Icahn and Deason, who together own 15.7 percent of the photocopier pioneer, have earlier separately called on the company to break off or renegotiate a joint venture with Fujifilm Holdings Corp, saying it was unfavorable to Xerox. Icahn has also called for Xerox CEO Jeff Jacobson to be replaced.
The two shareholders have now formed an alliance and plan to ask Xerox to explore options, including selling itself, breaking off its long-running joint venture with Fujifilm, and immediately firing Jacobson, the Journal reported, citing people familiar with the matter. http://on.wsj.com/2EYCRHd
The Journal had previously reported that Fujifilm and Xerox were discussing deals, including a change of control of Xerox, though not a full sale.
In a statement, Xerox said: “The Xerox Board of Directors and management are confident with the strategic direction in which the Company is heading and we will continue to take action to achieve our common goal of creating value for all Xerox shareholders.”
Deason has been asking the company to make public the terms of its deal with Fujifilm, which he called “one-sided”. Xerox has described Deason’s criticism as “false and misleading”.
The five-decade-old joint venture, 75 percent owned by Fujifilm and 25 percent by Xerox, is a pillar of Fujifilm’s business, accounting for nearly half the group’s overall operating profit. It has limited prospects for future growth, however, because of declining demand for office printing.
The reported operating profit of the joint venture, called Fuji Xerox, was about $750 million on sales of $10 billion in the year ended last March.
Fujifilm declined to comment on the Journal report.
(Reporting by Kanishka Singh in Bengaluru; Additional reporting by Makiko Yamazaki in TOKYO; Editing by Peter Cooney and Muralikumar Anantharaman)