Deason sues Xerox to allow new board nominations

FILE PHOTO: Logo of Xerox company is seen on building in Minsk
FILE PHOTO: The logo of Xerox company is seen on a building in Minsk, Belarus, March 21, 2016. REUTERS/Vasily Fedosenko/File Photo

March 2, 2018

By Arjun Panchadar

(Reuters) – Hedge fund manager Darwin Deason filed a new lawsuit against Xerox Corp <XRX.N> on Friday after it refused to allow him to make nominations to its board after a deadline, the latest blows in a row over its proposed merger with Fujifilm Holdings Corp <4901.T>.

Deason said on Monday he had the right to nominate directors, despite missing a deadline, because the current board had made a series of significant decisions and disclosures to stockholders after the deadline.

Xerox earlier on Friday said Deason did not have the right to nominate directors outside of the nomination window. (

Deason and fellow shareholder and hedge fund manager Carl Icahn are trying to stop Japan’s Fujifilm from taking over Xerox in a $6.1 billion deal.

The two investors, who control 15 percent of Xerox, argue the transaction dramatically undervalues the company and “disproportionately” favors Fuji.

“We need a strategy that is grounded in reality, not wishful thinking. In the coming weeks, that is exactly what we will lay out for your consideration” Icahn and Deason said in a joint statement. (

Shares of Xerox were down 1.5 percent at $30.10 in early trading.

(Reporting by Arjun Panchadar in Bengaluru; Editing by Sriraj Kalluvila and Patrick Graham)