ROCHESTER, N.Y. -- An investor who signed off on calling Xerox's acquisition by Japan-based Fujifilm a "scheme" has filed a lawsuit to try and block the merger.
Darwin Deason's lawsuit echoes the concerns of business magnate Carl Icahn, who stated that the merger deal dramatically undervalues the Rochester-founded imaging company, warning of "the company's final death knell."
Deason and Carl Icahn are among the largest individual shareholders of Xerox stock. A 12-paragraph letter from Icahn seemed in awe of the terms Fuji reached, noting the agreement would give the company control of Xerox "without spending a penny."
Xerox responded to the suit by stating the allegations are without merit and the company will vigorously defend itself.
Fuji is set to own 50.1 percent of the combined company, called Fuji Xerox. The combined company will have dual headquarters in Norwalk, Connecticut, where Xerox is based, and in Tokyo.
When the merger was announced, officials said both companies will continue to be separate, independent organizations and will operate business as usual until the close of the transaction so there is no immediate local impact.
Xerox employs some 3,400 people in Monroe County, which is home to countless retirees and former employees.