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Bain and KKR battle for Fuji Soft heats up as Bain goes hostile

Published 12/17/2024, 07:43 PM
Updated 12/18/2024, 01:10 AM
© Reuters. FILE PHOTO: The logo of Bain Capital is displayed on the screen during a news conference in Tokyo, Japan October 5, 2017. REUTERS/Kim Kyung-Hoon/File Photo

By Anton Bridge

TOKYO (Reuters) -Bain Capital said on Wednesday it plans to launch a tender offer for Fuji Soft shares even without the backing of the Japanese firm's board should a second-round bid from rival suitor KKR fail.

The estimated $2 billion bid for just under half of the Japanese IT firm's shares likely portends a rare hostile tussle between the two global private equity giants.

Bain last week offered 9,600 yen per share, 1.6% more than KKR has done. KKR, which has the backing of the Fuji Soft board, secured 33.9% in a first-round bid.

But Bain has the backing of Fuji Soft founder and major shareholder Hiroshi Nozawa. He and other family members hold a combined 18.6% stake and a Bain-Nozawa combination could result in them controlling two-thirds of the company.

Fuji Soft's board this week reaffirmed its support for the second stage of KKR bid despite the lower offer price of 9,451 yen.

Bain said it has "strong concerns and distrust" over Fuji Soft's response to its proposal, adding that there was no reason for its higher offer to be rejected and the rejection harmed the interests of minority shareholders.

Fuji Soft and KKR declined to comment.

© Reuters. FILE PHOTO: The logo of Bain Capital is displayed on the screen during a news conference in Tokyo, Japan October 5, 2017. REUTERS/Kim Kyung-Hoon/File Photo

Fuji Soft's share price rose 1.3% to 9,781 yen in morning trading, indicating that investors are speculating about the prospects of a more heated bidding war.

($1 = 153.5900 yen)

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