Jeff Jacobson rises again

Xerox CEO Jeff Jacobson (pictured above) will not resign his position, owing to the expiry of a settlement agreement with investors Carl Icahn and Darwin Deason. In a press release, Xerox announced that the deal reached with Icahn and Deason on Tuesday had expired under its own terms. The latest twist in the byzantine saga surrounding Fujifilm's takeover bid for the company sees the existing board and management keep their jobs, according to the release: As previously stated, the agreement would have become effective upon execution of stipulations discontinuing the Deason litigation with respect to the Xerox defendants. In the absence of such stipulations, the agreement expired at 8:00 p.m. ET on May 3, 2018. As a result, the current Board of Directors and management team will remain in place. This follows an injunction by a New York court, which Fujifilm is appealing, that prevented the merger from going ahead in its present form. Under the terms of the deal with Deason, Jacobson and six other board members would resign, with Jacobson to be replaced by Icahn's pick John Visentin, in exchange for the discontinuation of Deason's lawsuit; however, as the lawsuit was not discontinued, the agreement was automatically terminated. Deason initially filed suit with the US Securities and Exchange Commission to block the $US6.1 billion ($A7.6 billion) buyout. He and Icahn control a combined total of 15 percent of Xerox's stock, and the duo fiercely oppose the merger which they say dramatically undervalues the company. "We urge you – our fellow shareholders – do not let Fuji steal this company from us," he wrote in a letter to other investors in February. In its press release, the board and management of Xerox said they remained focused on driving continued improvement in financial and operational performance, and will consider all options to create value for the company and its shareholders.