Xerox is sliding after being sued by one of its largest shareholders (XRX)

pulse

February 13, 2018 5:56 PM

Billionaire investor Darwin Deason, Xerox's third-largest shareholder, opposes the proposed deal.

Billionaire investor Darwin Deason has sued
Shares of Xerox sank more than 3% on the news; Fujifilm was also down.

Shares of Xerox plunged as much as 3.35% Tuesday morning after one of its largest shareholders, billionaire Darwin Deason, filed a lawsuit against the company to block its proposed merger with Japan's Fujifilm.

The 78-year-old who sold Affiliated Computer Services to Xerox in 1988 for $6.4 billion hopes to halt the proposed merger between Xerox, of which he owns a 3.37% stake, and competitor Fujifilm.

"The transaction must be stopped dead in its tracks,” Deason’s suit, filed Tuesday, reads. "T

Both Deason and billionaire activist investor Carl Icahn, the second-largest Xerox shareholder, onMonday voiced their disapproval of the merger in a letter to shareholders, saying the $6.1 billion deal “dramatically undervalues” the company.

"We urge you - our fellow shareholders - do not let Fuji steal this company from us," the two wrote. "there is still tremendous opportunity for us to realize value on our own if we bring in the right leadership."

Under the proposed terms of the team, the two companies would merge to form one combined company, with Fujifilm shareholders owning a 50.1% majority stake.

Both Xerox and Fuji leadership support the deal. Xerox said in a statement that the proposed mergerrepresents compelling strategic and financial value for Xerox shareholders."

Shares of Xerox were down 1.84% at the time or writing. Fujifilm was down 3.23%.

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