US Markets

Blackstone gives Unizo more time to respond to buyout offer

Credit: REUTERS/BRENDAN MCDERMID

Blackstone Group said on Friday it had extended the deadline for Japanese hotel operator Unizo Holdings to respond to the buyout firm's $1.6 billion offer. Blackstone said in a statement that it would provide an additional update by Wednesday.

Adds details from Blackstone in paragraph three.

TOKYO, Nov 22 (Reuters) - Blackstone Group BX.N said on Friday it had extended the deadline for Japanese hotel operator Unizo Holdings 3258.T to respond to the buyout firm's $1.6 billion offer.

Blackstone said in a statement that it would provide an additional update by Wednesday. It had given Unizo until Nov. 19 to decide on its 5,000-yen-per-share offer. It has been extending the deadline since Oct. 23.

The U.S. fund said it is still interested in buying Unizo even though the hotelier likely initiated sale procedures for some 20 properties in the United States and Japan, with a total book value of about 155.5 billion yen ($1.4 billion). Asset sales are sometimes used as a tactic by buyout targets to reduce their attractiveness.

Blackstone last month emerged as a bidder for Unizo and warned the company it would launch a tender offer or explore other options if Unizo did not agree to its proposal.

Unizo in July became a target for a hostile bid by a Japanese travel agent H.I.S. Co 9603.T. Unizo at one stage turned to U.S. buyout firm Fortress Investment Group to fend off the bid. But later it withdrew its support for Fortress' white-knight offer.

($1 = 108.4800 yen)

(Reporting by Junko Fujita and Kevin Buckland Editing by William Mallard and Louise Heavens)

((Kevin.Buckland@thomsonreuters.com;))

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

Latest Markets Videos

Reuters

Reuters, the news and media division of Thomson Reuters, is the world’s largest international multimedia news provider reaching more than one billion people every day. Reuters provides trusted business, financial, national, and international news to professionals via Thomson Reuters desktops, the world's media organizations, and directly to consumers at Reuters.com and via Reuters TV.

Learn More