Rochester, N.Y. (WHAM) - Xerox is now being sued by one of its major shareholders over its planned merger with Fuji.
Darwin Deason, along with legendary corporate raider Carl Icahn, have claimed the deal with Fuji is bad for the venerable American company. The two issued a joint letter Monday, criticizing the merger and calling it a "scheme."
Deason's lawsuit has the potential to scuttle the merger if enough shareholders are convinced to vote it down.
"If the merger is rejected, you might expect to see a new board of directors and new senior management," said George Conboy, a financial analyst at Brighton Securities. "Xerox has suffered from lackluster management. Everyone on the board keeps getting paid, senior management gets bonuses, but the head count in Rochester goes down."
In a statement released Tuesday about the lawsuit, Xerox said, "It is unfortunate that Mr. Deason is seeking to interfere with Xerox shareholders' right to decide and is relying on meritless legal claims."
The full statement can be read here.