Shares of Xerox Corp. slumped 2.4% in morning trade Tuesday, after Darwin Deason, who he says is the document management company’s third-largest shareholder, sued Xerox and its current board members, Xerox’s former Chief Executive Ursula Burns and Japan’s Fujifilm Holdings Corp. in an effort to block the deal in which Fujifilm acquires a controlling stake in Xerox. Deason alleges in his complaint that The Xerox-Fujifilm deal, which was announced on Jan. 31, is a result of an “improper and fraudulently concealed ‘crown jewel’ lock-up agreement that Xerox entered into with Fuji 17 years ago, that was never disclosed to Xerox’s shareholders before the signing of the Xerox/Fuji transaction.” Deason said his objective is to enjoin the transaction, terminate the Xerox/Fuji lock-up agreements and seek “strategic alternatives” for Xerox. The stock has now shed 14.3% so far this month, while the S&P 500 has lost 6.3% and Fujifilm’s Japan-listed shares have gained 3.0%.
Market Pulse Stories are Rapid-fire, short news bursts on stocks and markets as they move. Visit MarketWatch.com for more information on this news.
From:: Stock Market News