What's going on?

Not all deals develop properly. On Monday, Fujifilm�s $6 billion bid to acquire once-great printer pusher Xerox was scrapped. Fujifilm�s stock crept up by 1% � but Xerox�s sunk by 4%.

What does this mean?

The deal was initially penned in January, as both companies struggled with falling demand for office printing equipment and pressure from activist investors to explore �strategic options� (which could mean job cuts, a complete overhaul of the business or a sale). But investors put a spanner in the works with a lawsuit against Xerox, claiming the deal was a product of fraud. Awkward.

Xerox and Fujifilm share ownership of a third company, Fuji Xerox, and the agreement effectively blocked any other company bar Fujifilm from buying Xerox in the future. Discovering issues with the joint company�s accounts, however, provided Xerox with an excuse to decline to dance. That�s a big win for the activists who own about 15% of Xerox and thought it was selling itself short. But Fujifilm thinks Xerox can�t just walk away like that � and it may all end up getting settled in a courtroom. Group selfie, anyone?

Why should I care?

The bigger picture: The activists win, hopefully to the benefit of all shareholders.

Monday�s share price drop for Xerox may reflect the labored company no longer having a buyer to hand � and could make it seem that activists aren�t team players. But investors are likely hoping that these activists will help guide the company to a turnaround or future deal that sees its stock rise, benefiting all shareholders.

For markets: Xerox is still for sale.

Xerox�s new board, with support from the activists, is considering its options � including putting up a for-sale board at $40 per share, compared to its current $28 per share value. Xerox�s investors believe there are buyers �waiting in the wings� � including a US private investment firm which expressed interest in acquiring the company just two weeks ago.