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News broke late Thursday night that Yasuo Takei, founder of consumer lender Takefuji Corp. (OTC:TAKAF) and Japan's second-richest man, has died at the age of 76.

The above linked Bloomberg report says:

Takei's death, almost three years after he stepped down as chairman, prompted a rally in Takefuji shares, which gained 5.3 percent to 5,780 yen in Tokyo today. Investors view the lender as a possible takeover target, and Canadian financier Peter Cundill increased his holding last month for the second time this year.

"The rise in Takefuji's share price today is probably based on a view that it will become an acquisition target after the former chairman's death," said Tsuyoshi Segawa, an investment strategist at Shinko Securities Co.

Takefuji earned 46.9 billion yen ($405 million) in the year ended March 31 and had total shareholder equity of $8.4 billion, according to data compiled by Bloomberg. That cash pile has attracted interest from buyout funds, which could use it to finance an acquisition.

The report ends with this:

Expectations of a takeover bid were refueled last month when Peter Cundill & Associates (Bermuda) Ltd., the second- biggest shareholder in Takefuji, raised its stake to 8.53 percent from 7.33 percent. Overseas investors hold about 56 percent of the company, according to data compiled by Bloomberg.

As you know, I added to my Takefuji position on Monday.

Even with the pop in the share price, I'm still underwater with this pick -- but optimistic it will turn out to be a profitable investment.

TAKAF 1-yr chart:

TAKAF 1-yr chart

Source: Takefuji Founder and Former Chairman Dies