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Cerberus Says Raised Seibu Stake to 35.5 Percent in Tender

Cerberus Capital Management LP said it raised its holding in Seibu Holdings Inc. to 35.5 percent through a tender offer as the private-equity company seeks to boost its control of the Japanese rail and hotel operator.

Cerberus increased its stake as of yesterday from 32.4 percent, the company said in a statement. The company has also recommended that executives, including former U.S. Vice President Dan Quayle, be appointed to Seibu’s board.

The New York-based private equity firm, which oversees more than $20 billion, is battling with Seibu to delay an initial public offering for up to three years as it seeks changes at the company to improve profitability. Seibu President Takashi Goto has said he won’t offer “any concessions” to Cerberus.

Seibu said today it opposes Cerberus’s plan to name members to the board and will urge shareholders to vote against it at a scheduled June 25 meeting.

Cerberus led a bailout of the company with Nikko Principal Investments Japan Ltd. in 2005 after the rail operator was delisted from the Tokyo Stock Exchange the year before for breaking exchange rules by misstating stakes. Seibu said earlier this year that it is now “financially prepared” for the relisting.

To contact the reporters on this story: Chris Cooper in Tokyo at ccooper1@bloomberg.net; Kiyotaka Matsuda in Tokyo at kmatsuda@bloomberg.net

To contact the editor responsible for this story: Anand Krishnamoorthy at anandk@bloomberg.net

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