Xerox responded to a lawsuit filed by Fujifilm by saying the internal accounting issues resulting from "mismanagement" made it "impossible" to close the transaction between the two companies.
Last week, Fujifilm filed a lawsuit against Xerox for more than $1 billion for a breach of contract and estimated damages after Xerox called off the $6.1 billion merger.
"The lawsuit is nothing more than a desperate and misguided negotiating ploy to save their takeover attempt, which to this day remains enjoined by order of the New York State Supreme Court, and could take our focus away from serving our customers," Vice Chairman and CEO John Visentin said in a letter to Fujifilm Chairman Shigetaka Komori.
Visentin said Xerox will start sourcing products from new vendors, build partnerships with companies aligned with Xerox, and will not renew the technology agreement with Fuji Xerox when it expires in 2021.
Click here to read Visentin's letter in its entirety.