Seibu Opposes Cerberus's Renewed Efforts to Increase Stake to 44.7 Percent
Japan's railway and real estate group, Seibu Holdings, has opposed the renewed attempt of Cerberus Capital Management LP to increase its stake in the company to 44.7 percent.
Seibu also opposed Cerberus plan to send eight members to the board, noting that Cerberus attempts "actually means that it is trying to control our company."
Cerberus had earlier said it plans to increase its stake from 32.4 percent to 44.7 percent in the Japanese company, and had stated the process of buying Seibu shares through a public tender offer.
If the tender offer succeeds, aside from the higher stake Cerberus will have 9 out of 18 directors on an expanded board. The board candidates include former U.S. Vice President Dan Quayle, chairman of Cerberus Global Investments.
In 2005 Cerberus led a bailout of Seibu after Seibu Railway, spending more than 100 billion yen to become the largest shareholder in Seibu. The firm is willing to spend 60 billion more to gain a larger control.