Xerox-Fujifilm Deal

TOKYO (Reuters) - Xerox Holdings Corp will sell its 25% stake in Fuji Xerox, its joint venture with Fujifilm Holdings <4901.T>, for $2.3 billion (£1.8 billion), after investor activism scuppered a deal involving the two companies.

But Norwalk, Connecticut-based Xerox said the deal was being terminated because of Fujifilm's failure to negotiate on improved terms

Fujifilm, which saw its shares drop 5.5 percent in Tokyo after news of the ouster, said it planned to file an objection with a court over the settlement

Under the terms of the deal, announced in January, Xerox, which has a market value of $7.7 billion, would first merge with a joint venture that the company operates with Fujifilm in Asia

Xerox, which has a market value of $8.3 billion, will first merge with a joint venture the company operates with Fujifilm in Asia

Fujifilm owns 75 percent of the joint venture, called Fuji Xerox, which accounts for nearly half of the Japanese company's sales and operating profit

Xerox's market value stands at roughly $7.7 billion; it also has more than $4 billion of net debt

Xerox needs new leadership as it was slow to launch new products and increase revenue