US hedge fund Steel Partners has refused to throw in the towel in its bid to buy iconic Japanese sauce producer Bull-Dog Sauce Co.
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Steel Partners said this morning (28 June) that it would fight on its battle to block Bull-Dog from launching a “poison pill” defence against its takeover bid.
Earlier today, a Tokyo court ruled that Bull-Dog could progress with the plan. The company wants to issue new shares to all its shareholders except Steel Partners, which currently holds a 10.52% stake in the Japanese sauce manufacturer.
Under the plan, Bull-Dog aims to dilute Steel Partners’ stake to make it tougher to buy the company.
The court dismissed Steel Partners’ claims that Bull-Dog’s plans unfairly discriminated against the hedge fund. However, the fund has launched an immediate appeal.
“We believe that the company’s scheme, if allowed to be carried out, would be detrimental to the legal framework of corporate Japan,” said Warren Lichtenstein, manager of Steel Partners Japan Strategic Fund.
“(It) would weaken international faith in the integrity of the Japanese capital markets, and will not only deter investment in Japanese companies but also undermine Japan’s efforts to become a global financial centre.”
Steel Partners has tabled an offer worth JPY1,700 (US$13.77) a share to buy Bull-Dog, valuing the company at around US$260m.
