TOKYO (Reuters) -U.S. private equity firm Bain Capital said it may withdraw its tender offer proposal for Japanese IT firm Fuji Soft, after rival suitor KKR raised its offer above Bain’s in a protracted bidding war.
Bain Capital “is carefully considering its future policy, including the option of withdrawing” the proposal, it said in a statement on Monday.
Bain’s possible concession would bring to an end months of intense competition with its U.S. rival to take control of Fuji Soft.
Bain had persevered in the bidding war even with rejection from the company’s board – a rare step in Japan – citing “strong concerns and distrust” over Fuji Soft’s response and arguing the rejection harmed the interests of minority shareholders.
However, KKR raised its offer price last week to 9,850 yen ($64.88) per share from 9,451 yen per share, above Bain’s most recent offer of 9,600 yen per share in December.
Bain had planned to launch its tender offer in early February.
The saga underscores an increasingly competitive dealmaking environment in Japan, as global investment firms target Japanese companies that are seen as having underutilised assets or ineffective corporate governance.
Fuji Soft shares ended down 0.2% at 9,960 yen on Monday. The Tokyo stock market is closed on Tuesday due to a public holiday.
KKR currently has a 33.97% stake in Fuji Soft following the first stage of a two-part bid in which two activist investors – 3D Investment Partners and Farallon Capital – agreed to tender their shares to KKR.
Bain, which is supported by Fuji Soft’s founding family, has yet to launch a tender offer.
($1 = 151.8200 yen)
(Reporting by Kiyoshi Takenaka in Tokyo and Kane Wu in Hong Kong; Editing by Jamie Freed and Muralikumar Anantharaman)
