Kokuyo Seeks to Raise Stake in Pentel

Economy

Tokyo, Nov. 15 (Jiji Press)--Japanese stationery maker Kokuyo Co. <7984> said Friday it aims to raise its stake in peer Pentel Co. to a majority from 37.80 pct at present in an investment expected to top 3.8 billion yen.

The move comes as Pentel is exploring for a capital tie-up with another company, Kokuyo said.

"We had not expected such a situation at a time when efforts are under way to build a relationship of trust" between the two companies, Kokuyo President Hidekuni Kuroda said at a press conference in Tokyo.

Pentel said in a statement that Kokuyo's plan to increase its Pentel stake is "unilateral and unacceptable." The two companies have no agreement in place to restrict Pentel's collaboration with others, it said.

Kokuyo in May acquired the Pentel stake indirectly for some 10.1 billion yen. In September, Kokuyo placed Pentel under direct ownership and the two companies have since been in talks on a business tie-up.

[Copyright The Jiji Press, Ltd.]

Jiji Press