Idemitsu says still unable to talk to founding family on Showa Shell takeover
(Reuters) Japanese refiner Idemitsu Kosan Co. said Tuesday it was still unable to talk to its founding family which is opposed to the firm's plans for a takeover of smaller rival Showa Shell Sekiyu.
Idemitsu and Showa Shell last month put on hold the deal indefinitely after running into fierce opposition from the Idemitsu founding family.
Idemitsu's general manager of public relations, Soichi Kobayashi, said that Idemitsu will still press ahead with one portion of the deal - a signed agreement to acquire a 33.3% stake in Showa Shell from Royal Dutch Shell after getting approval from the nation's antitrust regulator.
"There has been no change in the status quo since (October) the 13th," when Idemitsu announced delaying an integration indefinitely from the originally planned April 1 target, Kobayashi told reporters after a news conference on its half-year earnings.
"We do not have much time, and we would like to approach the founding family positively."
The founding family has, however, claimed it will be able to scuttle this part of the transaction too after buying a small stake in Showa Shell.
That purchase has meant that if Idemitsu buys the stake from Royal Dutch Shell, Idemitsu may have to, by law, make a tender offer for the rest of Showa Shell shares. Idemitsu would be reluctant to make a tender offer since that would increase its total acquisition cost.
Asked whether Idemitsu can avoid the tender offer if it obtained the approval from Japan Fair Trade Commission, Kobayashi declined to comment.
The company on Tuesday posted a net profit of $216 MM in the six months ended in September, as inventory losses shrank.
Reporting by Osamu Tsukimori and Taiga Uranaka; Editing by Muralikumar Anantharaman
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