US hedge fund Steel Partners is refusing to back down in its bid to buy Japan’s Bull-Dog Sauce Co.
Go deeper with GlobalData
The private equity group said today (10 July) that it would take its case to Japan’s Supreme Court, the country’s highest chamber, after having its latest appeal over the sauce manufacturer thrown out.
Yesterday, the Tokyo High Court dismissed Steel Partners’ appeal to block Bull-Dog Sauce from putting anti-takeover measures into place.
Bull-Dog Sauce wants to issue more shares in the company to dilute Steel Partners’ stake in the business and stave off a bid from the hedge fund. Bull-Dog Sauce believes Steel Partners’ US$260m takeover bid is not in the “common interest” of the company’s shareholders.
At present, Steel Partners holds a 10.52% stake in the Japanese firm. The hedge fund insisted that Bull-Dog’s plan to issue more shares is a “discriminatory act” that violated Japanese corporate law.
How well do you really know your competitors?
Access the most comprehensive Company Profiles on the market, powered by GlobalData. Save hours of research. Gain competitive edge.
Thank you!
Your download email will arrive shortly
Not ready to buy yet? Download a free sample
We are confident about the unique quality of our Company Profiles. However, we want you to make the most beneficial decision for your business, so we offer a free sample that you can download by submitting the below form
By GlobalData“We feel we have no choice but to appeal to the Supreme Court of Japan as Bull-Dog Sauce’s actions breach the principles of shareholder equality,” said Warren Lichtenstein, manager of Steel Partners Japan Strategic Fund.
“We also categorically dispute the High Court’s characterisation of SPJSF as an ‘abusive bidder’. Our track record as an investor since 2002 clearly shows that SPJSF is a long-term shareholder whose interests are aligned with those of the company.”
