Beji Sasaki, a maverick businessman who first challenged Tokyo's status quo four decades ago, said his bidding war with the $13 billion computer giant Fujitsu Ltd. is just the start of his plan to use takeovers to change Japan Inc.
Sasaki, a 61-year-old entrepreneur, fashion designer and supermarathon runner, said he's setting up a fund backed by Taiwanese money to help ambitious Japanese executives and employees buy out their companies and expand into China and Southeast Asia. His logic is that many firms are undervalued because their owners or senior managers lack incentives to take risks and boost profits.
But before helping others do buyouts, he's trying an acquisition of his own. The charismatic native of a remote Japanese island, who runs a group of more than 50 small businesses ranging from termite extermination to sales of ATMs, made headlines in February with an unsolicited offer for Solekia Ltd.
Seeking to buy 36 percent of the chip company, Sasaki claimed its relationship with Fujitsu is ruining profitability. Fujitsu made a counter-bid, triggering a rare public battle in a culture that frowns upon hostile takeovers.
"I have no problem causing friction," Sasaki said. "Solekia is just the first test case."
According to Sasaki, Fujitsu has been treating Solekia as a de facto subsidiary, despite owning just 2.3 percent of the shares. As Solekia's biggest customer, it has been getting favorable trade terms and leaving Solekia stuck with excess inventory in tough times, he said.
Before Sasaki made his bid, Solekia traded at less than a third of its book value, and its stock had been flat for more than a decade. Solekia's nine-person board, which includes four former Fujitsu executives, supported Fujitsu's offer and opposed Sasaki's, saying strengthening the company's long relationship with Fujitsu should help increase customers, while Sasaki has a short-term perspective and lacks understanding of the business.
"Solekia is an important partner," Fujitsu spokesman Shinnosuke Okubo said.
