Japan: Sapporo, facing Steel offer, renews takeover defence

Sapporo Holdings Ltd., Japan's third-biggest beermaker, won investor approval to renew anti- takeover measures as Warren Lichtenstein's Steel Partners seeks to raise its stake, according to Bloomberg, March 28.

Shareholders today voted to retain the plan allowing the brewer to dilute the holding of a hostile bidder, Sapporo President Takao Murakami told reporters in Tokyo.

The renewal of the defense bolsters Sapporo's position as it starts talks on Steel Partners Japan Strategic Fund (Offshore) LP's revised offer to increase its holding to 33.3 percent from 19 percent. Tokyo-based Sapporo last month rejected the fund's year-old 155 billion yen ($1.55 billion) bid to take a majority stake, saying it would harm shareholder interests.

``Steel Partners doesn't really have much choice but to continue negotiating with Sapporo,'' Doug Scott, a Tokyo-based analyst at KBC Securities, said before the announcement. ``They're not likely to want to make a hostile bid given the threat of a poison pill.''

On March 14, Sapporo agreed to talks with Steel Partners on its offer of 875 yen a share to increase its stake to a third, two weeks after rejecting a takeover bid. The fund, which began buying the stock in 2004, is Sapporo's largest shareholder.

Sapporo shares closed unchanged at 825 yen today, 6 percent below the offer price.

Steel Partners declined to comment on the outcome of the shareholder vote.

``We're focused on our proposal to buy more shares,'' Masako Matsuoka, a Steel Partners spokeswoman who works for PRAP Japan, said. ``We're hopeful about our progress.''

28 March, 2008