Pressure is on for Citigroup: Tender offer closes on April 26

April 23, 2007
By Ken Worsley

Back on April 4, we reported that Citigroup would have a hard time acquiring Nikko Cordial at 1,700 yen per share, as both Harris Associates LP and Orbis Investment Management had moved their sell orders up to 1,900 yen. With a closing tender date of April 26, things are starting to look tight for Citigroup, who has said that they will not raise their offer again.

Then, last Friday, Southeastern Asset Management, who owns 6.6% of Nikko Cordial sales, had its spokesperson announce that the company, “does not intend to tender the approximately 6.6 percent of Nikko Cordial owned by its clients at the 1,700 yen per share price offered by Citigroup.”

Orbis claims that 29% of Nikko shares are now being offered at 1,900 yen per share. Seeking Alpha’s John Bethel asks the question on everyone’s mind: “Will this pressure Citi to raise its offer?”

Or, will some fund managers start feeling pressure from their clients? Clients who might have thought they had a nice return coming in at 1,700 yen per share…

Filed Under Barbarians at the Gate, M&A