(Reuters) - Fujifilm Holdings Corp’s (4901.T) merger with U.S. firm Xerox Corp (XRX.N) was temporarily blocked on Friday following a court ruling, handing its activist investors a win after they sued to stop the deal.
The ruling reopened nominations to Xerox’s board on Friday after investor Darwin Deason filed a lawsuit against the company last month opposing the deal and asking to add his own nominees to the board.
The preliminary injunction came a day after the companies reopened deal talks on their $6.1-billion merger. They are discussing a higher price after Xerox, under pressure from top investors, asked to renegotiate the terms, Reuters had reported earlier.
The proposed merger is opposed by Deason and Carl Icahn, two of Xerox’s top shareholders, who have said the agreement dramatically undervalues Xerox.
Fujifilm said it would consider all options, including whether to appeal against the decision.
“We disagree with and are disappointed by the judge’s ruling,” the Japanese firm said in a statement.
“We strongly believe that all Xerox shareholders should be able to decide for themselves the operational, financial, and strategic merits of the transaction,” it said.
Xerox and Deason could not be reached immediately for comment.
In February, Deason asked a court to block the merger with Fujifilm Holdings, arguing the U.S. photocopier maker’s board had failed shareholders by approving a deal that undervalues the company.
Icahn and Deason, who own a combined 15 percent of the U.S. printer and copier maker, have