Steel Partners Japan Strategic Fund has attacked the tactics adopted by the management of Bull-Dog Sauce in order to fend off a takeover bid from the private equity group.

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Last month Steel Partners launched a tender offer for the iconic sauce manufacturer, offering JPY1,584 (US$13.05) a share for Bull-Dog. The company’s management has moved to block the takeover bid, which it maintained is not in the “common interest” of shareholders.


Appealing directly to Bull-Dog employees, Steel Partners emphasised its commitment to the company, adding that it did not plan to become involved in the “day-to-day” management of the company.


The investment fund criticised the board’s recent proposal to block the takeover. Bull-Dog plans to issue three equity warrants per outstanding share. The company will not allow Steel Partners, its largest shareholder, to exercise its warrants.


However, Steel Partners suggested today (12 June) that such a costly move jeopardised the long-term future of the company. In a letter to the Bull-Dog board, Steel Partners said: “The company’s board of directors have misconstrued our intentions and now seek to employ methods aimed to thwart our (tender) offer.
 
“We believe that your methods will materially harm the company’s value. We question why you would go to such lengths and risk diverting company assets that could otherwise be used for the company’s growth to purchase share acquisition rights from a shareholder that is not interested in divesting itself of its ownership in the company.”

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Before it launched the takeover bid, Steel Partners held a 10.52% stake in Bull-Dog.