Plans for Fujifilm to take over the rest of Xerox may have to go back to the drawing board after a preliminary injunction was granted to billionaire investors Carl Icahn and Darwin Deason.
The move has also seen a spill of most of the Xerox board and the departure of chief executive Jeff Jacobson, who judge Barry Ostrager said, had tried to close a deal despite advice to end negotiations and moves to replace him.
Xerox says it has entered an agreement with Icahn and Deason, who claim Xerox was "dramatically undervalued" by the original deal and called for a new board. Six new members - Keith Cozza, Nicholas Graziano, Scott Letier, Jay Firestone, Randolph Read and John Visentin - are to be appointed.
Under a longstanding joint venture Fujifilm currently owns 75 per cent of Fuji Xerox, which was to have bought back that stake for about $6.1 billion, money which Fujifilm would have used take control of 50.1 per cent of Xerox under a deal proposed in January.