Fujifilm Holdings Corp. failed to persuade a Manhattan state judge to dissolve an order barring its planned merger with Xerox Corp., cutting off a possible option for keeping the deal alive.
The company has claimed in a separate lawsuit it will suffer $1 billion in damages if it can't cement the $6.1 billion takeover, which was thwarted by activist investors Carl Icahn and Darwin Deason. Deason sued Xerox in February in Manhattan state court to block the acquisition, accusing its former CEO Jeff Jacobson of acting without authorization to strike a deal that preserved his job at shareholders' expense.
The judge's decision is the latest in the monthslong drama for control of the American company that has been punctuated by lawsuits and maneuverings from each side. Fujifilm continues to believe a combination between Xerox and its existing joint venture is the best solution, while Icahn and Deason are considering options to draw higher bids.