Another Notch On Icahn's Activist Belt: Xerox CEO Out As Part Of Settlement

Activist investor Carl Icahn notched a big win after Xerox Corp XRX said its CEO and most of its board of directors will be stepping down.

What Happened

Icahn and Darwin Deason, two heavyweight investors and large Xerox shareholders, made it clear they strongly oppose Xerox's proposed merger with Fujifilm.

The two investors succeeded in winning a court order to temporarily block the proposed deal. As part of the ongoing battle between the investors and Xerox, Xerox CEO Jeff Jacobson along with six of the 10 members of the board will step down and be replaced with new members backed by Icahn and Deason.

Why It's Important

"With new leadership in place, we believe Xerox will be much better positioned to take advantage of multiple potential value-enhancing opportunities, including restructuring its relationship with Fujifilm, our supposed "partner" whose conduct over the last year is more unbelievable than what you see on fictional TV shows like House of Cards or Billions," Icahn said in a statement.

What's Next

Xerox's revamped board will meet to re-evaluate its existing joint venture deal with Fujifilm, including the potential termination of the relationship. In the meantime, Xerox said actions it took is in the best interest of "serving customers and building on the company's financial and operational performance."

Xerox's stock closed Tuesday at $32.29 per share.

Related Links:

Icahn, Deason Say Xerox-Fujifilm Merger Makes Shareholders 'Virtually Powerless'

Analyst: Buy Xerox — Whether Fuji Deal Closes Or Not

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