US private equity firm Bain Capital said on Monday that it is weighing up the possibility of withdrawing its tender offer proposal for Japanese IT company Fuji Soft following an improved offer from rival suitor KKR, according to a report by Reuters.
In a statement, Bain Capital said it is “carefully considering its future policy, including the option of “withdrawing” the tender offer and bringing to an end a prolonged bidding war between the two buyout firms.
Bain had continued its pursuit of Fuji Soft despite rejection from the company’s board, a rare move in Japan, with the PE firm arguing that Fuji Soft’s response showed “strong concerns and distrust,” harming the interests of minority shareholders.
However, KKR raised its bid last week to JPY9,850 ($64.88) per share, surpassing Bain’s December offer of JPY9,600 per share. KKR’s improved offer has increased pressure on Bain, which had planned to launch its tender offer in early February.
KKR already holds a 33.97% stake in Fuji Soft, following the first stage of a two-part acquisition bid. This stake includes shares tendered by activist investors 3D Investment Partners and Farallon Capital. In contrast, Bain has yet to officially launch a tender offer but is supported by Fuji Soft’s founding family.
Fuji Soft’s shares closed down 0.2% at JPY9,960 on Monday.
