Fujifilm nears deal with Xerox

1:32 pm JST																Japan's Fujifilm close to deal with Xerox					Combination aimed at reviving ailing US group and thwarting activist attack

Xerox Corp (NYSE:XRX) shares jumped almost 5 percent in the after-hours trading session on Tuesday following reports that Japan-based Fujifilm Holdings Corp.is about to make an agreement to buy more than 50 percent shares of Xerox. The new company, which will have a combined revenue of $18 billion, will keep the dual moniker as well as its pair of corporate headquarters in both Tokyo and CT. The Japanese company is scheduled to hold a news conference on its business strategy tonight. Xerox faces a revolt from two major shareholders, Carl Icahn and Darwin Deason, who between them control 15% of the company.

The takeover bargain comes not as much as a year after Fujifilm conceded disgraceful bookkeeping norms at Fuji Xerox, yet Komori said that Xerox's solid administration gauges could be gainful to the new organization. Fujifilm on Wednesday reported a 29.4 percent drop in operating profit at its document solutions operations, which includes Fuji Xerox, for the third quarter, underperforming its imaging and information segments. "The new structure will leverage the strengths of our three companies". Current Xerox CEO Jeff Jacobson will remain as chief executive of Fuji Xerox.

Xerox shareholders will receive a special cash dividend of $9.80 per share. Just ahead of this announcement, Fujifilm announced that it will fire about 10,000 of the 47,000 employees now employed at Fuji Xerox, a move the company estimates will cut costs by about $450 million annually.

The two companies noted that the combined entity will be a global leader in innovative print technologies and intelligent work solutions, with annual revenues of USD18 billion and leadership positions in key geographic regions.

It will have dual headquarters in both the U.S. and Japan.

Enhanced scale with presence in over 180 countries and covering key geographies including North America, Japan, Europe, Asia Pacific and China.

The newspaper added that Xerox shares would not disappear from the stock market and the deal could be announced Wednesday.

As a first step, Fujifilm announced Wednesday that it will lay off 10,000 employees worldwide at the co-owned subsidiary. Xerox shares ended down 0.5 percent on Tuesday.

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