Fuji Soft Supports KKR's Buyout Offer

TOKYO (Reuters) – Japanese IT firm Fuji Soft has reaffirmed its support for the second stage of a tender offer buyout from U.S. private equity firm KKR and opposed a higher offer from rival Bain Capital, it said in a statement on Tuesday.

KKR currently owns about 34% of Fuji Soft following the first stage of its two-part tender offer, primarily through shares tendered by activist shareholders 3D Investment Partners and Farallon Capital Management at 8,800 yen ($57.18) each.

Last month, KKR raised its offer price for Fuji Soft to 9,451 yen—1 yen above Bain's earlier bid—only to have Bain increase its offer to 9,600 yen last week.

Bain has stated that it would begin its tender offer only with Fuji Soft's board approval.

Fuji Soft mentioned that Bain could not take the company private through a squeeze-out due to KKR owning more than a third of the company's shares, risking a potential deadlock if Bain's tender were to proceed.

($1 = 153.9000 yen)