April 26, 2018 / 11:16 PM / a month ago

Xerox, Fujifilm reopen deal discussions: sources

NEW YORK (Reuters) - Xerox Corp (XRX.N) Chairman Robert Keegan told a New York state court on Thursday that Xerox and Fujifilm Holdings Corp (4901.T) have reopened talks about their $6.1 billion agreement for the Japanese company to acquire the U.S. print and copy machine maker, according to sources inside the courtroom.

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

The sources declined to be named because they were not authorized to talk to the media.

Xerox and Fujifilm are discussing increasing the financial consideration for Xerox shareholders, according to a separate source close to the situation.

Xerox declined to comment. A spokeswoman for Fujifilm confirmed the company had received a request for a renegotiation from Xerox.

Fujifilm Holdings' logos are pictured ahead of its news conference in Tokyo, Japan January 31, 2018. REUTERS/Kim Kyung-Hoon/Files

Keegan was speaking as part of a court hearing connected to Xerox shareholder Darwin Deason’s lawsuit, filed in March, to block Xerox’s deal with Fujifilm and also nominate directors to Xerox’s board.

Under the agreement announced in late January, Fujifilm would take over Xerox and combine the U.S. company into their existing joint venture to gain scale and cut costs as demand for office printing declines.

    The deal is opposed by top Xerox shareholders Deason and activist investor Carl Icahn, who say that it unfairly favors Fujifilm.

    In Deason’s lawsuit, he argues that he has the right to nominate directors to Xerox’s board despite missing a deadline because the current board had made significant decisions and disclosures to stockholders after the deadline for nominations.

    Deason could not be reached for comment on Thursday.

    Icahn also tweeted on Thursday in support of Deason’s plan for Xerox to pursue alternatives to its deal with Fujifilm.

    The hearing will resume on Friday in New York.

    Reporting by Liana B. Baker in New York; Editing by Richard Chang

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