US fund trims its Sapporo ambitions
US fund Steel Partners said yesterday it now wants only one-third stake in Japan's third-biggest beer maker Sapporo Holdings, ending its push for a majority, and was willing to pay 6 percent more to get it.
The revised terms come after the fund lost a court case last year in which it sought to block anti-takeover moves by Bull-Dog Sauce Co, one of several firms in Japan it has either targeted or pressured management to boost shareholder returns.
The fund said in a statement it was willing to offer 875 yen per share for a 33.3 percent stake in Sapporo, compared with its offer in February last year of 825 yen per share for two-thirds of the brewer.
That would be just under the 33.4 percent that would give it veto power over management decisions.
Steel Partners wants to avoid the type of "unnecessary damage" caused to the fund and the other stakeholders when Bull-Dog Sauce implemented defensive measures, resulting in a 45 percent drop in shareholder value, managing partner Warren Lichtenstein was quoted as saying.
The fund, which owns 19 percent of Sapporo, also said it is seeking talks with Sapporo's board of directors and may be prepared to raise the offer price.
"(We are) prepared to upwardly adjust the new offer price if the board provides documentation that reflects additional value," it said in a statement.
Steel Partners said if the board is unwilling to support the revised proposal or negotiate, the board must publicly disclose its intentions about any measures it may take if the fund decides to increase its ownership in the firm above 20 percent.
After the news, shares of Sapporo jumped as much as 7.4 percent.
Agencies
(China Daily 03/11/2008 page16)
