Bloomberg News
Xerox Corp.’s Chief Executive Jeff Jacobson is resigning in a settlement with two of the company’s biggest investors, Carl Icahn and Darwin Deason, a pact that shakes up the majority of the board and puts its transaction with Fujifilm Holdings Corp. at risk.
The new board is expected to consider alternatives to the deal with Fujifilm , a complex transaction that sells the majority of Xerox to the Japanese company by combining with a joint venture the two operate in Asia.
Icahn and Deason have been seeking to kill that deal, saying it undervalues Xerox, and had alleged Jacobson quickly negotiated the deal in an attempt to save his own job. Xerox had launched a CEO search last year, the company has disclosed.
A judge last week temporarily blocked the Fujifilm transaction, siding with Deason in a lawsuit, saying the talks were conflicted by Jacobson’s tenuous position.
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