Components & Peripherals News
5 Things You Need To Know About Carl Icahn's Battle To Derail Xerox-Fuji Deal
Posting A $150 Million Bond
Activist investors Carl Icahn (pictured) and Darwin Deason posted a $150 million bond to preserve two New York State court injunctions aimed at stopping the Xerox Fuji deal. The first injunction prevents Xerox from holding a shareholder vote on the Fuji transaction. The second injunction gives shareholders the ability to nominate an alternate slate of directors that Icahn is promoting as "committed to enhancing value for all shareholders rather than rushing into a no-premium deal with Fuji to further their own personal interests."
Xerox calls this bond inadequate. "The loss in value if the transaction does not proceed is in the billions of dollars," said Xerox in a legal filing. The $150 million bond set by the court "is not 'rationally related' to Xerox's potential damages and therefore is not sufficient to support the injunction," it stated in court filings."