KKR's Bid for Fuji Soft

By Makiko Yamazaki and Anton Bridge

TOKYO (Reuters) – Fuji Soft's top shareholder confirmed its support for KKR's bid amid a $4 billion takeover battle between major private equity firms.

"As Fuji Soft reaffirmed its support for KKR's tender offer, we believe KKR is the best partner for the company," Singapore-based 3D Investment Partners stated.

KKR initially offered 8,800 yen ($58.67) per share in August, but Bain Capital countered with a 9,450 yen per share bid this month.

KKR has secured commitments from 3D and another significant shareholder, Farallon Capital, with stakes of 23.46% and 9.22% respectively, which could give KKR control of nearly a third of Fuji Soft and block Bain's takeover attempt.

3D affirmed it has an irrevocable tender agreement with KKR, participating in a process from last year to solicit buyout proposals. While KKR took part in this process, Bain declined, stating it was not wanted by Fuji Soft.

"KKR has collaborated with the company on privatization for over a year," said 3D, expressing confidence in Fuji Soft's future under KKR's ownership.

Bain's counterbid prompted KKR to adopt a two-stage process allowing shareholders to participate in an initial or later tender at the same price of 8,800 yen per share.

KKR has extended the first stage of its tender offer by 10 working days, now set to expire on Nov. 5.

(Exchange rate: $1 = 149.9800 yen)