On January 31 2018, Reuters announced that Fujifilm is set to merge with Xcrox (see press article below). Assume investors are rational. Discuss the stock price reaction to the announcement of the Fujifilm-Xerox deal. (1 page maximum) 5 pts Japan's Fujifilm Holdings is set to take over Xerox Corp in a S6.1 billion deal, combining the U.S company into their existing joint venture to gain scale and cut costs amid declining demand for office printing The acquisition announced on Wednesday comes as Xerox has been under pressure to find new sources of growth as it struggles to reinvent its legacy business amid waning demand for office printing. Fujifilm is also trying to streamline its copier business with a larger focus on document solutions services Consolidation of R&D, procurement and other operations would enable Fuji Xerox to deliver at least S1.7 billion in total cost savings by 2022, the two companies said. Fujifilm now owns 75 percent of Fuji Xerox, the joint venture going back more than 50 years ago which sells photocopying products and services in the Asia-Pacific region The two companies said that Fuji Xerox will buy back that slake from Fujifilm for around S6.1 billion, using bank debt. Fujifilm will use those proceeds to purchase 50.1 percent of new Xerox shares. Plans were for the deal to be completed around July-August, they added. The combined company will keep the Fuji Xerox name and become a subsidiary of Fujifilm, with dual headquarters in the United States and Japan, and listed in New York. It wil be led by Xerox CEO Jeff Jacobson, while Fujifilm CEO Shigetaka Komori will serve as chairman