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Fuji Soft founding family affirms assistance for Bain's $2 bln hostile takeover bid

The founding household of Japanese IT firm Fuji Soft on Wednesday repeated its assistance for a takeover quote by private equity firm Bain Capital that is opposed by Fuji Soft's board, it stated in a declaration jointly launched with Bain.

Amid a bidding war with rival personal equity giant KKR , Bain last week offered 9,600 yen per share, 1.6% more than KKR's 9,451 yen quote, and on Wednesday went hostile after Fuji Soft's board rejected the greater offer and supported KKR's.

Fuji Soft creator Hiroshi Nozawa signed up with Bain in questioning the self-reliance of the special committee established by the board to scrutinise the bid, stating he had strong issue and distrust regarding the process of selecting the members.

The special committee had forgotten the purpose of the special committee, Nozawa and Bain said, including that they had no objective to be hostile towards the executives and management of Fuji Soft.

Fuji Soft decreased to talk about the release. KKR was not immediately available for comment.

Nozawa, who together with relative owns 18.6% of Fuji Soft's shares, came out in assistance of Bain's quote in October and at the time knocked the way the privatisation process had been carried out.

KKR, which has the backing of the Fuji Soft board, secured 33.9% of the company's shares in a first-round tender that managed to dodge an earlier bid from Bain that was at the time higher than its own.

Fuji Soft declined Bain's offer on the premises that 2 large investors would hamper management decision making and Bain's tender offer would not conclude for three months.

Through its tender, Bain is intending to acquire 50.1% of Fuji Soft's shares - including the Nozawa household's stakes - and would manage business in a way that appreciates the existing executives and management group, it stated.

(source: Reuters)