Carl Icahn believes a deal between Fujifilm and Xerox will happen soon, but changes must happen first, especially in the leadership department.
Icahn owns a 9.7 percent stake in Xerox, which makes him its largest shareholder. He insists that Xerox CEO Jeff Jacobson be replaced on the grounds of underperformance roughly one year into the job. Per The Street, he believes the time is ripe for changing of the guards at Xerox. He says that change must happen sooner rather than later. He submitted names of possible candidates but did not disclose their goals.
Icahn has been instrumental in shaking up top-level leadership in other companies such as eBay, Forest Laboratories, Manitowoc Co. and Welbilt Inc. He believes that if no such changes happen in Xerox, any attempt to revive the sagging interest in the company will just go down the drain. He pinpointed several names that in his opinion have been tenured long enough that they no longer bring in any value to Xerox. They include Chairman Robert Keegan, Ann Nolan Reese, William Hunter and former Citigroup CEO Charles O. Prince.
In a letter for Xerox shareholders, Carl Icahn stressed his thoughts. “We have shown time and time again that replacing an ineffective CEO can lead to billions and billions of dollars of value creation for all shareholders.”
Both Xerox and Fujifilm have seen a dip in popularity due to the technologies that have emerged in the past years. The dependence on copiers lessened after the use of emails surged and increased competition from rival Canon Inc. while traditional films and cameras are replaced by smartphones. Fujifilm now sources much of its revenue from supplying diagnostic and imaging systems for the medical industry.
Recently, camera company Eastman Kodak Co. launched into its own cryptocurrency called KodakCoin. Experts claim this is a better route for Fujifilm than signing a deal with Xerox. Fujifilm Xerox is a joint venture by Xerox and Fujifilm in the Asia-Pacific region, and the deal already spans more than 50 years. Fujifilm lost to Canon in acquiring the medical division of Toshiba Corp., adding pressure to the company to look other avenues for revenue-making.
“I think Xerox has great potential. There are many things to do here and a merger at the right time makes great sense. We’re not against that, but it has to be at the right time. This company would be a much better candidate for an acquisition once they clean certain things up,” Icahn said in an interview. Xerox has split its business process outsourcing department two years ago to two independent, publicly traded companies. The other company is now called Conduent Inc., which has stakes also owned by Icahn.
After the news broke out of an imminent deal, the shares in Xerox surged by as much as 5 percent, while Fujifilm dipped by 2.3 percent. The former has an estimated market valuation of $7.7 billion, while the latter is valued at around $22 billion. The copier company employs 6,000 people. It left its office in Rochester and moved to its new address in Connecticut.
Canada’s housing prices expand and encourage debt crisis
Changing the Internet of Things with blockchain
TV stars earn as much as A-list movie actors and actresses
4 big names investing in biotech you should know about
London beats New York in attracting Norway’s property investments
One of America’s oldest gold mines enters the crypto-century
Harbinger Research recommends ‘phenomenal’ PotNetwork as ‘Strong Speculative Buy’
This hemp market player’s growth is about to go into overdrive
CBD stocks emerge strong in the growing cannabis industry, marijuana legalization
Essential format components to include in your newsletter
Promoting women’s football in Malta by UEFA projects
Euro NCAP marks its 20th anniversary with two crash tests
European Parliament’s International Trade Committee backs CETA
The American Heart Association has released four new PSAs
PwC presents 20th global CEO survey results in Switzerland
Auto4 days ago
Mercedes-Benz to unveil new SL-class soon
Commodities1 day ago
Graphene market-leader Elcora Advanced Materials Corp. is about to disrupt the Lithium-ion energy storage market
Crypto5 days ago
Uber co-founder designs new cryptocurrency
Featured5 days ago
Here are the 4 most widely used online trading platforms today
Crypto2 days ago
Say bye to Bitcoin: 7 other cryptocurrencies to invest in
Entrepreneurship3 days ago
Woman to Watch: 23andMe co-founder and CEO Anne Wojcicki
Crowdfunding2 days ago
Crowdfunding platform RedCrow gives healthcare startups some leverage
Crypto4 days ago
Will cryptocurrencies soon replace traditional money?