Cerberus Tender Offer to Boost Seibu Holdings Stake Ends Today

Cerberus Tender Offer to Boost Seibu Holdings Stake Ends Today
A Seibu Railway Co. train bound for Ikebukuro leaves Hanno Station in Saitama, Japan. Photographer: Noriyuki Aida/Bloomberg

May 31 (Bloomberg) -- Cerberus Capital Management LP’s tender offer for Seibu Holdings Inc. shares ends today, as the private-equity company seeks to boost its control of the Japanese rail and hotel operator.

Cerberus, which owns 32.4 percent of Seibu, offered to buy more shares to raise its holdings to as much as 44.7 percent. Cerberus 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.

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