Responding to letter released by Carl Icahn and Darwin Deason on February 20, 2018, Xerox (XRX) said that the letter was consistent with their misguided campaign to undermine Xerox's combination with Fuji Xerox. The Xerox Board and management team evaluated a range of strategic options for the company and determined that the combination with Fuji Xerox is clearly the superior path forward for Xerox.
Xerox said, "Combining with Fuji Xerox will create a global industry leader that leverages the respective strengths of Xerox and Fuji Xerox, maximizes the new company's ability to innovate and compete in today's market, and unlocks trapped value by eliminating duplicative efforts between the existing joint venture partners."
Xerox noted that The result is a significant opportunity for shareholders to realize long-term, sustainable value as holders of a stronger company, in addition to receiving the near-term substantial dividend payment at closing.
In the letter to shareholders of Xerox, Carl Icahn and Darwin Deason said today that possibly the best alternative would be to consolidate with or sell to one of competitors (or to a private equity firm who would optimize the business and return it to growth) who Icahn and Deason believe would pay a large premium once they truly understood they could get around the Fuji Xerox joint venture agreements and eventually operate unfettered in Asia using the Xerox trademark and Xerox's many patents.
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