Top shareholder in Japan's Unizo says wants explanation after $1.3 bln about-face
09/10/2019 07:30
TOKYO, Oct 9 (Reuters) - The top shareholder in Japan's
Unizo Holdings 3258.T on Wednesday pressed the hotel operator
to explain its abrupt change of heart towards a takeover offer,
citing concern about a lack of disclosure and the risk of
conflicts of interest.
In a letter to Unizo's board, U.S. activist fund Elliott
Management ended weeks of public silence over Unizo's abrupt
withdrawal of support last month for a $1.3 billion buyout bid.
That about-face came after Unizo had earlier welcomed the "white
knight" bid from SoftBank-backed 9984.T Fortress Investment
Group.
Previously a relatively obscure hotelier, Unizo is now being
seen by foreign investors as a prominent battleground for
corporate governance and whether Prime Minister Shinzo Abe's
push for greater transparency and reform has taken root.
"We are highly concerned about the lack of disclosure and
the risk of conflicts of interest that have appeared in Unizo's
handling to date of the tender offer bids," Elliott, which owns
13.14% of Unizo, said. It was referring to both the Fortress
offer, and an earlier, hostile bid from H.I.S. Co 9603.T ,
which has since been withdrawn.
"No answers, or answers that do not directly address
shareholders' concerns, will only deepen the misgivings that
shareholders are starting to have," Elliott said.
(Reporting by Junko Fujita and David Dolan; Editing by Chris
Gallagher)
((david.dolan@tr.com; +81 3 6441 1526; Reuters Messaging:
david.dolan.thomsonreuters.com@reuters.net))