Ootoya to Oppose Colowide's Tender Offer
Tokyo, July 17 (Jiji Press)--"Teishoku" set meals restaurant chain Ootoya Holdings Co. <2705> has decided to oppose a tender offer by its top shareholder, major restaurant chains operator Colowide Co. <7616>, it was learned on Friday.
The decision will be announced after being approved at an extraordinary meeting of Ootoya's board on Monday, informed sources said.
Colowide became Ootoya's top shareholder last autumn by purchasing about 19 pct of all Ootoya shares from its founding family for about 3 billion yen.
In June, Colowide saw its proposal to renew Ootoya executives voted down at a regular meeting of Ootoya shareholders.
The company then launched the tender offer to buy Ootoya shares between July 10 and Aug. 25 for 3,081 yen apiece, compared with the stock's closing price of 2,990 yen on Friday. It aims to raise its stake in Ootoya to between 45 and 51.32 pct.
[Copyright The Jiji Press, Ltd.]