Descente Opposes Tender Offer by Itochu
Tokyo, Feb. 7 (Jiji Press)--Sportswear maker Descente Ltd. <8114> said Thursday it opposes a tender offer launched by its top shareholder, major trading house Itochu Corp. <8001>.
After Itochu acquires more shares in Descente, there is a danger that the business priority might be the interests of the trader's group over the corporate value of Descente and the common interests of the sportswear maker's shareholders, Descente said in a statement explaining its reasons for opposing the tender offer.
The rare hostile takeover battle between two major companies developed from a business policy conflict between Descente and Itochu.
Itochu has been unhappy with Descente's heavy reliance on its operations in South Korea for profits and was seeking a review of the policy.
On Jan. 31, without prior talks with Descente, Itochu announced the launch the same day of the tender offer to buy more Descente shares.
[Copyright The Jiji Press, Ltd.]