Xerox CEO Quits Company Making Carl Icahn Very Happy

It was a win for activist investor Carl Icahn on Tuesday. Xerox announced in a statement that it has reached a deal with Icahn as well as activist investor Darwin Deason.

As part of the agreement, the company’s CEO Jeff Jacobson is quitting and six other current Xerox board members are stepping down.

The move will allow representatives of Icahn and Deason to take control of running the printer and copier company and allows the new board to consider “terminating or restructuring Xerox’s relationship with Fujifilm and the proposed transaction with Fujifilm.”

Fujifilm isn’t ready to throw in the towel as a statement on Wednesday from the company said that it has “serious concerns” over the settlement between the activist investors and Xerox. FujiFilm also said that Xerox has an “obligation” to stick with their deal.

It was back in January that Xerox and Fujifilm had announced a plan where Xerox’s operations would be merged with Fuji Xerox. As part of the deal, Fujifilm would have 50.1% of Fuji Xerox, ad Xerox shareholders would own the rest.

According to Ican and Deason, the deal “dramatically undervalues” Xerox and argued that it would be the “final death knell” for the company.

Disclaimer: We have no position in Xerox Corp (NYSE: XRX) and have not been compensated for this article.