Kokuyo Drops Plan to Acquire Pentel
Osaka, Feb. 14 (Jiji Press)--Japanese stationery maker Kokuyo Co. <7984> has given up on acquiring domestic peer Pentel Co., Kokuyo's president and chief executive officer, Hidekuni Kuroda, said Friday.
But Kokuyo will continue efforts to build friendly relations with Pentel to conclude a business tie-up, Kuroda said at a press conference in the western Japan city of Osaka, noting that Kokuyo is still "in love with" the brand value of Pentel.
Last year, Kokuyo, the largest shareholder of Pentel with a stake of some 46 pct, launched a hostile tender offer to raise the stake to over 50 pct.
To fend off Kokuyo's bid, Pentel took measures including asking industry peer Plus Corp. for a capital partnership. Pentel also called off talks with Kokuyo.
The failure to acquire Pentel is "regrettable," Kuroda said, suggesting that a lack of communications with Pentel's management and shareholders was to blame.
[Copyright The Jiji Press, Ltd.]