TOKYO/AMSTERDAM, Nov 18 (Reuters) - Orbis Portfolio Management said on Wednesday it would not tender its 10-percent shareholding in copier and printer maker Oce to Canon Inc, saying its 730 million euro ($1.1 billion) bid significantly underpriced the Dutch company.
The Japanese camera and office equipment maker on Monday offered 8.6 euros for each Oce share, a 70 percent premium to the previous trading day's close, in a move to strengthen its product line-up and sales channels.
'As a result of a flawed negotiation process ... Oce's assets are being significantly undervalued at the proposed buyout price,' Orbis Portfolio Management (Europe), a manager and adviser to Orbis Funds, said in a statement distributed by its public relations agent FD.
'Orbis Funds would not wish to tender their approximate 10 percent holding at the current offer price.'
Oce shares were up 0.5 percent at 8.615 euros, slightly above the Canon offer, fuelled by hopes of a higher bid or a counter bid.
Oce rejected negotiations were flawed.
'Oce has been in frequent contact with all relevant industry players, and has considered and discussed various transaction forms, all in the best interest of its shareholders and other stakeholders,' the company said in a statement.
Most analysts said on Monday that the bid price was good for Oce shareholders, though some did not rule out a rival offer, possibly from Hewlett-Packard, Kyocera, Xerox, Toshiba Corp or Konica Minolta, which has a cross-selling agreement with Oce.
Including debt and other obligations, the deal values Oce at about 1.5 billion euros ($2.2 billion), OCE Chief Executive Rokus van Iperen has said.
Canon's offer for Orbis comes a little over a year after Japanese rival Ricoh, the world's largest copier maker, bought U.S. office equipment distributor Ikon Office Solutions, dealing a blow to Canon, which provided 60 percent of the products Ikon handled.
Canon, which derived 65 percent of its 2008 sales from printers and copiers, and Oce and other rivals have suffered from the economic slump, which has forced companies to cut office costs.
Oce, loss-making in the past two quarters, has been cutting costs and staff and paid no final dividend in 2008. Canon and Ricoh reported sharp falls in quarterly profit last month.
($1=.6720 Euro)
(Reporting by Kiyoshi Takenaka in Tokio and Harro ten Wolde in Amsterdam; Editing by Joseph Radford and David Cowell) ((kiyoshi.takenaka@thomsonreuters.com; +81 3 6441 1810; Reuters Messaging: kiyoshi.takenaka.reuters.com@reuters.net)) Keywords: OCE/ORBIS (If you have a query or comment on this story, send an email to news.feedback.asia@thomsonreuters.com) COPYRIGHT Copyright Thomson Reuters 2009. All rights reserved. The copying, republication or redistribution of Reuters News Content, including by framing or similar means, is expressly prohibited without the prior written consent of Thomson Reuters.
The Japanese camera and office equipment maker on Monday offered 8.6 euros for each Oce share, a 70 percent premium to the previous trading day's close, in a move to strengthen its product line-up and sales channels.
'As a result of a flawed negotiation process ... Oce's assets are being significantly undervalued at the proposed buyout price,' Orbis Portfolio Management (Europe), a manager and adviser to Orbis Funds, said in a statement distributed by its public relations agent FD.
'Orbis Funds would not wish to tender their approximate 10 percent holding at the current offer price.'
Oce shares were up 0.5 percent at 8.615 euros, slightly above the Canon offer, fuelled by hopes of a higher bid or a counter bid.
Oce rejected negotiations were flawed.
'Oce has been in frequent contact with all relevant industry players, and has considered and discussed various transaction forms, all in the best interest of its shareholders and other stakeholders,' the company said in a statement.
Most analysts said on Monday that the bid price was good for Oce shareholders, though some did not rule out a rival offer, possibly from Hewlett-Packard, Kyocera, Xerox, Toshiba Corp or Konica Minolta, which has a cross-selling agreement with Oce.
Including debt and other obligations, the deal values Oce at about 1.5 billion euros ($2.2 billion), OCE Chief Executive Rokus van Iperen has said.
Canon's offer for Orbis comes a little over a year after Japanese rival Ricoh, the world's largest copier maker, bought U.S. office equipment distributor Ikon Office Solutions, dealing a blow to Canon, which provided 60 percent of the products Ikon handled.
Canon, which derived 65 percent of its 2008 sales from printers and copiers, and Oce and other rivals have suffered from the economic slump, which has forced companies to cut office costs.
Oce, loss-making in the past two quarters, has been cutting costs and staff and paid no final dividend in 2008. Canon and Ricoh reported sharp falls in quarterly profit last month.
($1=.6720 Euro)
(Reporting by Kiyoshi Takenaka in Tokio and Harro ten Wolde in Amsterdam; Editing by Joseph Radford and David Cowell) ((kiyoshi.takenaka@thomsonreuters.com; +81 3 6441 1810; Reuters Messaging: kiyoshi.takenaka.reuters.com@reuters.net)) Keywords: OCE/ORBIS (If you have a query or comment on this story, send an email to news.feedback.asia@thomsonreuters.com) COPYRIGHT Copyright Thomson Reuters 2009. All rights reserved. The copying, republication or redistribution of Reuters News Content, including by framing or similar means, is expressly prohibited without the prior written consent of Thomson Reuters.
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