Nisshinbo Industries Inc. is expected to beat out the Murakami Fund in a takeover bid for New Japan Radio Co. as the firm's parent decided Thursday to sell its dominant shareholdings in the electric parts maker to Nisshinbo.
Japan Radio Co. made the announcement just before the friendly tender offer by Nisshinbo, a cotton spinner, was to expire at the end of the day.
New Japan Radio has supported Nisshinbo's tender offer and opposed the rival bid from the fund run by financier Yoshiaki Murakami.
Japan Radio, which holds more than 50 percent of New Japan Radio shares, said Thursday it chose Nisshinbo because selling to the Murakami Fund would have negatively affected relations with New Japan Radio.
After Nisshinbo launched the tender offer at a price of 840 yen per share, the Murakami Fund came up with a bid price of 900 yen. Nisshinbo then raised its bid price to 880 yen and the fund responded with 950 yen.
New Japan Radio's management and its union said they were opposed to a Murakami Fund takeover, saying they would have difficulties building a relationship of trust with the investment fund.
Murakami has said choosing Nisshinbo to buy at the lower price will negatively affect shareholders, and he is expected to file a damages suit against Japan Radio on their behalf.