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Photocopier pioneer Xerox in talks for deal with Japan's Fujifilm - WSJ


(Reuters) - Corp, under pressure to find new growth sources amid shrinking demand for its and copier business, is in talks for a with Japanese Holdings that could include a change in control of Xerox, the Journal reported.

Norwalk, Connecticut-based been targeted by activist investor as it struggles to reinvent its legacy business amid waning demand for office is trying to streamline its copier business with a larger focus on

Xerox, which pioneered photocopiers, and already have a five-decade old Tokyo-based copier joint venture focusing on the region including and China, leaving to cover the rest of the world.

report on Wednesday cited people familiar with the matter. It also said a full takeover of is not on the table, citing one of the people. (

declined to comment. said it would not comment on speculative reports.

has a market value of about $7.7 billion, while is valued at around $22 billion.

"desperately" needed new leadership as it was slow to launch new products and increase revenue, Icahn wrote in an open letter to shareholders in December, a day after nominating four members to the board. He is Xerox's biggest shareholder with a stake of 9.7 percent.

spun off its business process outsourcing unit in 2016 and separated into two independent, publicly traded companies.

shares fell 1.8 percent in to 4,724 yen per share following report, while the broader Japanese market slipped 0.3 percent.

The copier joint venture, Fuji Xerox, was created in 1962 and now accounts for nearly half of Fujifilm's sales and operating profit.

has been seeking growth outside its shrinking photographic film business, stepping up its acquisition drive in areas such as

Past deals include the 2015 purchase of Cellular Dynamics International Inc, a U.S. firm that makes human-induced pluripotent stem (iPS) cell lines and tissue cells.

Last August, it said it aimed to spend 500 billion yen ($4.49 billion) in strategic acquisitions over three years.

($1 = 111.7000 yen)

(Reporting by Uday Sampath in Bengaluru, Minami Funakoshi and Makiko Yamazaki in Tokyo; Editing by and Muralikumar Anantharaman)

(This story has not been edited by Business Standard staff and is auto-generated from a syndicated feed.)

First Published: Thu, January 11 2018. 13:07 IST