Xerox board says to seek better terms from Fujifilm

(Reuters) - Xerox Corp's board said on Wednesday it intended to resume merger discussions with Fujifilm Corp, seeking a superior deal to terms announced at the end of January that have spurred a complex proxy fight over the company.

Reuters reported last month that Xerox had told a New York state court the companies had reopened talks on their $6.1 billion agreement for the Japanese company to acquire the U.S. print and copy machine maker.

The company, synonymous with photocopying for half a century, has been under fire from investors Carl Icahn and Darwin Deason for trying to sell itself to Japan's Fujifilm Holdings in a complex deal they say dramatically undervalues Xerox.

Icahn and Deason, who together own about 15 percent stake in Xerox, said in April their alternative plan for Xerox could create total value of $54 to $64 per share compared to the about $28 per share in from the Fujifilm deal.

As further court rulings point to an extended battle, the hedge fund managers also said earlier this week that they would consider an all-cash bid from Fujifilm of at least $40 per share - 43 percent more than the Japanese firm's existing offer.

(Reporting by Sonam Rai and Arjun Panchadar in Bengaluru; editing by Patrick Graham)