Xerox Corp. (NYSE: XRX) announcedon Sunday that it has ended its merger deal with Fujifilm. Instead, Xerox entered into a settlement agreement with Carl Icahn and Darwin Deason, which will change up the Board.
Xerox shares were trading 7.7 percent lower late Monday morning.
Xerox and Fujifilm entered into an agreement back in January to combine the two into Fuji Xerox, giving Fujifilm control of the company. The merger prompted large shareholders, Icahn and Deason to argue that the deal was undervaluing Xerox.
Investors also argued with the current management of the company, which resulted in Xerox changing its board up.
Under the agreement, Jeff Jacobson resigned from his role as Chief Executive Officer as well as a member on the Board of Directors of Xerox. Prior to being appointed to his role at Xerox, Jacobson was a Senior Advisor to the Chairman of Exela Technologies and Operating Partner for Advent International.
The company appointed five new members to its board, while five members resigned from the board. The new board will also include Keith Cozza, the Chief Executive Officer of Icahn Enterprises, who will be the new Chairman of the Board of Directors of Xerox.
“We are extremely pleased that Xerox finally terminated the ill-advised scheme to cede control of the company to Fujifilm. With that behind us and new shareholder-focused leadership in place, today marks a new beginning for Xerox. We have often said that the most important person at a company (by far) is the CEO. We are therefore also pleased that John Visentin, a tried and true veteran in this area, will be taking the helm.” said Icahn in a statement.
Also part of the deal, Xerox and Icahn will withdraw their nominations of any other director candidates for the upcoming 2018 Annual Meeting of Shareholders.
The new Board of Directors plan to hold a meeting to evaluate plans to maximize shareholder value.