Elliott Management Corp., the largest shareholder of Unizo Holdings Co. Ltd., urged the Japanese hotel operator to accept Blackstone Group Inc.'s approximately ¥171.1 billion takeover offer, Reuters reported, citing a statement from the activist investor.
Unizo earlier turned down the private equity giant's ¥5,000-per-share proposal. The rejection prompted Elliott Management to question how the hotelier responded to previously received offers from H.I.S. Co. Ltd., SoftBank Group Corp.'s Fortress Investment Group LLC and an unnamed "locally renowned" fund.
Elliott Management's support for Blackstone's latest bid comes with a warning for Unizo that it will take "all available measures" if the target company fails to do its "fiduciary duty," according to the news platform. The shareholder further noted that the private equity firm's proposal comes with employment conditions that are very generous to Unizo's employees.
Currently, Unizo is yet to make a decision on the offer, with a spokeswoman telling Reuters that the company is unable to comment on Elliott Management's statement, the Oct. 17 report added.
Separately, Fortress Investment extended its tender offer period for Unizo until Nov. 1. The ¥4,000-per-share offer was initially intended to end on Oct. 17.
As of Oct. 17, US$1 was equivalent to ¥108.59.