FUJIY FUJIFILM Holdings Corporation (PK)

By Allison Prang 

This article is being republished as part of our daily reproduction of WSJ.com articles that also appeared in the U.S. print edition of The Wall Street Journal (June 26, 2018).

Xerox Corp. Chief Executive John Visentin responded to Fujifilm Holdings Corp.'s lawsuit against the company calling it "desperate" and "misguided," marking the new CEO's first public statement about the suit.

Earlier this month, Fujifilm sued Xerox for more than $1 billion after Xerox decided not to merge with the company.

That decision was announced as Xerox reached a second deal with activist investors to make management changes, which included forcing out former Xerox CEO Jeff Jacobson.

"The lawsuit is nothing more than a desperate and misguided negotiating ploy to save their takeover attempt," Mr. Visentin said in prepared remarks.

Fujifilm maintains that Xerox breached the transaction agreement and that its case will be validated, the company said in a statement Monday.

Mr. Visentin said in his letter to Fujifilm CEO Shigetaka Komori that Xerox is moving to get its products from other suppliers and intends to do so "more and more in the months and years ahead."

He also said it doesn't plan to renew a technology agreement with Fujifilm that is slated to expire in 2021, which could allow it to sell its products directly into the Asia-Pacific market.

Fujifilm said that is unrealistic. "We believe that it would be extremely difficult for Xerox -- which does not currently possess any marketing channel in Asia -- to build its own channel from scratch," the company said.

Xerox shares are down 1.9% midday Monday.

--Cara Lombardo contributed to this article.

Write to Allison Prang at allison.prang@wsj.com

(END) Dow Jones Newswires

June 26, 2018 02:47 ET (06:47 GMT)

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