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Cerberus raises Seibu stake, falls short of target

  • Andrew Woodman
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Cerberus Capital Management has raised its stake in Japan's Seibu Holdings to 35.48%, giving it enough control to block resolutions by management. However, the New York-headquartered firm fell short of its goal of buying 44.7% of the Japanese rail and property group.

According to a statement, Cerberus has purchased 10.4 million additional shares after receiving application from 2,916 Seibu shareholders accounting for 21.3% of all shareholders.

The two sides have been at loggerheads since a dispute over the timing and pricing of Seibu's IPO erupted a year ago - Cerberus had argued that the group needed more time to improve its business before going public.

Cerberus, which previously held a 32.4% stake in Seibu, launched a hostile bid to increase its stake to 36% though a tender offer in March after the Japanese company moved to severe formal ties with the firm. This offer was later extended to 44.7% in April. The tender offer was due to expire on May 17 but Seibu extended the deadline until May 31,

Cerberus initially paid $802 million for a 29.9% stake in the company in 2006, participating in a $1.2 billion bailout alongside Nikko Principal Investments. Seibu was delisted from the Tokyo Stock Exchange in 2004 after misstating stakes held by shareholders in contravention of exchange rules.

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