Japan's Unizo to reject H.I.S. offer, raises spectre of hostile bid (updated)

HIS Co

06/08/2019 10:12

(Recasts, adds details, and changes headline)
    TOKYO, Aug 6 (Reuters) - Japanese hotel operator Unizo
Holdings Co  3258.T  said on Tuesday it would reject a bid by
H.I.S. Co  9603.T  to raise its stake, adding that the offer
lacked synergy and was priced low, setting the stage for a
potential rare hostile bid in Japan.
    Japanese travel agency H.I.S. already owns a 4.79% stake in
Unizo, and launched a tender offer last month to raise its
holding to as much as 45%.  urn:newsml:reuters.com:*:nL4N24B1B0 
    However, the process has turned complicated after the hotel
operator's rejection and disclosure on Tuesday that U.S. hedge
fund Elliott Management had taken a 5.51% stake in Unizo,
overtaking H.I.S. as the top shareholder. 
    Unizo said it could not expect synergies from an alliance
with H.I.S. and that the price was too low. 
    Shares in Unizo have surged more than 80% since July 9, a
day prior to the bid announcement. The offer price of 3,100 yen
represented a 15% discount from Tuesday's closing price.   
    Elliot's stakeholder presence may complicate the bid
process. The U.S. fund is known for buying stakes in companies
that are in the middle of a takeover or an acquisition process,
forcing better terms for shareholders.         

 (Reporting by Junko Fujita; Editing by David Dolan and Sherry
Jacob-Phillips)
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