U.S. investment fund Steel Partners on Tuesday denied a newspaper report that it and the so-called Murakami Fund had jointly become a major shareholder of Kanebo Ltd.
Steel Partners has never purchased Kanebo shares, said Prap Japan Inc., which serves as a public relations agency in Japan for the U.S. investment fund.
The Yomiuri Shimbun reported Saturday that the Murakami Fund, operated by former trade ministry official Yoshiaki Murakami, and Steel Partners at one point held a combined stake of nearly 50 percent in Kanebo.
The ailing maker of food, pharmaceutical and household products is undergoing rehabilitation with the help of the Industrial Revitalization Corp. of Japan.
It was delisted Monday from the Tokyo Stock Exchange for overstating its earnings for years.