ROCHESTER, N.Y. — Xerox officials say it plans to appeal a judge's ruling that halts a deal to sell part of its business to Japanese company Fujifilm.

The Wall Street Journal quotes the judge as saying the deal was made by a "massively conflicted chief executive who was looking out for his own interests." That CEO is Jeff Jacobson.

The article says the company's board had plans to replace Jacobson last year, before he went ahead and made this deal.

Investor Darwin Deason filed the suit in state supreme court in an attempt to block the deal. He, along with fellow shareholder Carl Icahn, have been trying to convince the board to drop Jacobson, saying the deal undervalues Xerox and favors Fuji.

"When you've got your two biggest holders lined saying we think the deal stinks," said George Conboy, Brighton Securities Chairman. "With that much publicity, other Xerox shareholders may sit up and say, maybe we could get more if this deal is renegotiated or if a new deal is sought. You're going to see this at the annual meeeing."

Xerox officials released a statement, saying in part:

"The company strongly believes that its shareholders should be allowed to exercise their right to vote on the transaction and decide for themselves. The Xerox Board undertook a rigorous process to reach its decision to approve the proposed transaction, including a comprehensive review of the company’s strategic and financial alternatives, as well as potential transaction structures in its negotiations with Fujifilm."