Xerox Corporation

Shareholder Sues Xerox Over Plan To Split Core Business

Xerox shareholder Darwin Deason sued to block a reorganization that would effectively reverse its $6.2 billion takeover of the company he founded, Affiliated Computer Services Inc.

Deason, 76, argues the split, planned for completion by the end of the year, would leave him with an investment in an "unattractive, low-growth" document technology business, according to a complaint filed Wednesday in federal court in Dallas.

As part of the takeover, Deason negotiated for preferred shares in Norwalk-based Xerox that were specifically designed to compensate for his controlling stake in ACS and to "guarantee his continued investment in the combine investment-grade...