U.S.-based Xerox Corp.'s plan to sell itself to Japanese rival Fujifilm Holdings Corp. was temporarily blocked by a New York judge who determined the chief executive officer behind the deal was trying to preserve his own job.
Investor Darwin Deason sued to block the transaction, accusing Xerox CEO Jeffrey Jacobson of acting without authorization to strike a deal with Fujifilm that preserved his job at the expense of shareholder value. Xerox labeled that claim "highly disingenuous" and asked the judge to deny Deason's request for a court order blocking the deal.
Judge Barry Ostrager said in his order Friday that Xerox's existing joint venture with Fujifilm would have made it difficult but not impossible to pursue another deal that would have required a buyer to provide a cash payment to Xerox investors.