Xerox Corp. plans to renegotiate the acquisition proposal made by Fujifilm Holdings Corp. because major shareholders opposed to the agreed deal are calling for a better price.
"We intend to resume discussions with Fujifilm regarding a potential combination with Fuji Xerox on superior terms to the transaction announced on Jan. 31," the for the major maker of printers and copiers said in a letter released to shareholders Wednesday.
Tokyo-based Fujifilm said in January it will acquire a 50.1 percent stake in Xerox and merge it with its copier subsidiary Fuji Xerox Co. Since Fujifilm would acquire Xerox shares by using Fuji Xerox's corporate value, it would not make any capital contributions.
The deal triggered opposition from major shareholders Carl Icahn and Darwin Deason, who said Fujifilm was underestimating the value of Xerox. They said they would consider an acquisition proposal if the bid was at least $40 per share.
In the letter, Xerox said it remained convinced that a combination of the two companies is "the most value-enhancing opportunity for Xerox." It also stated its commitment "to maximize value for all shareholders."
Fujifilm, meanwhile, said in a statement it continues "to believe the transaction announced Jan. 31 provides the best value for the shareholders of Xerox and Fujifilm."
"If we receive a new proposal, we will need to study whether it offers value to the shareholders of Fujifilm. Needless to say, the plan must be rational and acceptable for the shareholders of both companies," it said.
The spat over the deal led to Deason filing a lawsuit in New York in February that sought to halt the plan.
Both Fujifilm and Xerox have appealed an injunction handed down by the court on April 27 that blocked the deal.