Seibu Holdings, the railway and real estate conglomerate of Japan has rejected the attempt of Cerberus Capital Management LP to increase its shareholdings in the company. This just sets the stage for a public battle between the two companies.
In a statement made last week, Cerberus said it had been seeking to increase its shareholdings from 32.4% to 44.7%. This was being done though the purchase of Seibu shares through a public tender offer.
The opposition by Seibu stems from the plan of Cerberus to send eight nominees to the Seibu board. The Japanese firm says the nominees are not independent of Cerberus.
Should Cerberus succeed, it would not only gain a larger stake but have nine seats out of eighteen in the board of directors on an expanded board. Cerberus already had one board member, former US Vice President Danforth Quayle, who is also chairman of Cerberus Global Investments.
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