(Reuters) - XeroxCorp said its Ceoand several board members will step down to settle a suit brought by activist shareholders who had opposed a $6.1 billion deal with Japan's FujifilmHoldings.
Shareholders Carl Icahnand Darwin Deasonhad led a battle over a deal to combine the U.S. company into an existing joint venture, Fuji Xerox
Chief ExecutiveJeff Jacobsonand six other board members agreed to step down as part of an agreement to resolve the pending proxy battle, Xeroxsaid in a statement.
Xerox's current board said in a statement that after shareholder feedback on the proposed combination with Fuji Xerox, Xeroxapproached Fujifilmregarding a potential increase in consideration to be received by Xeroxshareholders.
As yet, Fujifilmhas not made a proposal to enhance the transaction terms, the statement added.
The new board of directors plans to meet immediately to evaluate strategic alternatives which include terminating or restructuring Xerox's relationship with Fujifilmand the proposed transaction with Fujifilm
The two companies had sought to gain scale and cut costs as demand for office printing Equipmentdeclines. But the shareholders argued the deal undervalued Xerox, and that Jacobson had pursued a deal with Fujifilmeven after the board advised him to halt negotiations.
A Representativefor Fujifilmcould not immediately be reached for comment.
(Reporting by Ismail Shakiland Subrat Patnaikin Bengaluru, Alison Frankel and Liana Baker in New York, and Ritsuko Ando in Tokyo; Editing by Edwina Gibbs)
(This story has not been edited by Business Standard staff and is auto-generated from a syndicated feed.)