rffrydr
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 Posted: Sun Jul 01, 2007 7:44 am Post subject: Japanese takeovers |
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Bull-Dog bites back. Legacy of cross-shareholdings for long term holds is strong in Japan. Court recently upheld shareholders' right to tell Hedge Fund to stick it's 27% premium. Japan's "underperformance"?
| Quote: | Byline: JONATHAN SOBLE
TOKYO -- Managers of Japan's Bull-Dog Sauce strengthened their hand yesterday against Steel Partners, the US hedge fund pursuing an unsolicited takeover of the condiment maker, after an overwhelming majority of shareholders approved a proposal to dilute the hedge fund's ownership stake.
The move is the latest twist in a battle that is turning into a litmus test of Japanese attitudes towards corporate reform and activist investors - not least because unsolicited bids from hedge funds have been rare.
The outcome could determine whether a western-style mergers and acquisitions market will take off in Japan, bankers say, which could have significant implications for investment flows into the country.
Bull-Dog Sauce, which was founded in 1902, makes a type of Worcestershire sauce widely used in Japanese homes and restaurants.
Earlier this year, Steel Partners - a US group - took a sizeable stake in thecompany and in May it launched a takeover bid.
However, Bull-Dog is seeking to reduce Steel Partners' stake from 10.5 per cent to about 3 per cent through an issue of new stock to shareholders other than the fund - making a buy-out moredifficult.
Steel Partners is challenging the anti-takeover measure in court, which could rule as early as this week.
However, Bull-Dog shareholders representing more than 80 per cent of voting rights approved the anti-takeover plan yesterday at an annual general meeting.
"Steel Partners is an in-vestment fund whose aim is to generate returns quickly. As a manufacturer, we want to generate profits over the long term," said Shoko Ikeda, Bull-Dog president.
About 60 per cent more shareholders than normal turned up for the meeting in a Tokyo hotel ballroom.
In siding with managers to chase off Steel Partners, the shareholders are snubbing a buy-out offer worth 27 percent more than the company's market price at the time the bid was launched in mid-May.
Source Citation: Soble, Jonathan. "Bull-Dog bites back at Steel Partners' bid.(COMPANIES INTERNATIONAL)." The Financial Times (June 25, 2007): |
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