Japan's Ootoya says to formally oppose takeover bid by Colowide

Japanese restaurant chain Ootoya Holdings said it would oppose a tender offer by its top shareholder, Colowide Co, turning the bid into the country's latest hostile deal.

TOKYO, July 17 (Reuters) - Japanese restaurant chain Ootoya Holdings 2705.T said it would oppose a tender offer by its top shareholder, Colowide Co 7616.T, turning the bid into the country's latest hostile deal.

In an emailed statement, Ootoya said it would announce later on Friday that a group of employees are against the takeover, followed by a formal decision on Monday by the board of directors to oppose the bid.

Colowide had said last week it would launch the bid to boost its stake to 51.32% from 19.16% as it seeks to expand through acquisitions. Japanese companies are increasingly seeking more control of affiliates to streamline operations.

Ootoya immediately criticised the offer, saying it came as a surprise given that Colowide knew the majority of shareholders opposed such a move. The bid also followed Colowide's failed attempt to install candidates to Ootoya's board - a proposal rejected at the annual shareholders' meeting last month.

Colowide, which runs a variety of restaurants from izakayas to sushi chains, has offered 3,081 yen a share. Ootoya shares closed at 2,860 yen on Thursday.

(Reporting by Junko Fujita Editing by Chang-Ran Kim)

((813-4563-2711, junko.fujita@thomsonreuters.com, Reuters Messaging:junko.fujita.reuters.com@reuters.net))

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

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