KKR Shares Tumble 8.53% Amidst Intensifying Bidding War for Fuji Soft

On February 4th, KKR (Kohlberg Kravis Roberts & Co.) shares witnessed a notable decline of 8.53%, marking the second consecutive day of losses. Over this period, the stock has cumulatively fallen by 10.64%. This came amid ongoing events surrounding KKR's tender offer for Fuji Soft, a Japanese IT company.

KKR recently announced an increase in its tender offer for Fuji Soft, from 9,451 yen per share to an enhanced 9,850 yen. This revision comes as a direct reaction to Bain Capital's proposal of 9,600 yen per share. Both private equity giants are embroiled in a competitive bidding process, which could see spending up to $2 billion to gain control of Fuji Soft.

Currently, KKR holds a 34% stake in Fuji Soft, following the preliminary phase of the bidding war. Despite its attempts to gain a majority, KKR has faced challenges due to Bain Capital's higher bid, which has led KKR to extend its tender offer deadline, now set to conclude by February 19th.

Bain Capital, with the backing of Fuji Soft's founding family, has refrained from initiating a counter tender offer as it awaits the potential failure or withdrawal of KKR's proposal. Previously, KKR acquired shares in Fuji Soft in August 2024 at a price of 8,800 yen per share, which prompted Bain to propose a more competitive offer of 9,450 yen the following month.

This escalating bidding scenario highlights the high stakes and strategic maneuvering in the realm of private equity acquisitions, as both KKR and Bain Capital vie to secure a leading position in the field of information technology through their acquisition of Fuji Soft.

Regulatory filings have confirmed KKR's extension of the offer period, signaling a continued commitment to securing the acquisition despite the rising competition.