By Anton Bridge
TOKYO (Reuters) -U.S. private equity firm KKR will raise its offer price for Japanese IT company Fuji Soft by more than 4% to take it above a rival offer from Bain Capital, it said on Tuesday.
It is the latest salvo in a protracted bidding war that began in August last year, with KKR and Bain competing to buy Fuji Soft in tender offer bids worth as much as $2 billion.
KKR raised its price to 9,850 yen ($63.44) per share from 9,451 yen per share, taking it above Bain’s most recent offer of 9,600 yen ($61.82) per share.
KKR currently has a 33.97% stake in Fuji Soft following the first stage of a two-part bid in which two activist investors – 3D Investment Partners and Farallon Capital – agreed to tender their shares to KKR.
But KKR has failed to secure a majority due to Bain’s higher offer and because Fuji Soft’s share price has consistently traded above KKR’s offer.
KKR has repeatedly extended its tender offer period, with the latest due to end on Friday.
Fuji Soft’s shares were up 1.79% at 9,975 yen in early afternoon trade, above both tender offers.
Bain, which is supported by Fuji Soft’s founding family, has not launched its tender offer bid yet, having said that it would wait for KKR’s bid to fail or be withdrawn.
Bain was not immediately available for comment on KKR’s higher bid. Fuji Soft declined to comment.
KKR initially offered 8,800 yen a share for Fuji Soft last August. Bain announced its bid, at 9,450 yen per share, the following month, prompting KKR to raise its offer to 9,451 yen a share. It had maintained its offer price despite Bain increasing its offer to 9,600 yen.
($1 = 155.2800 yen)
(Reporting by Anton Bridge, Additional reporting by Kantaro Komiya and Kane Wu; Editing by Chang-Ran Kim and Kate Mayberry)
