Orbis Investment Management, a 6.9% Nikko Cordial shareholder and Mackenzie Financial Corp, at least a 5.7% shareholder, have come forward to reject Citigroup's ¥1,350/share ($11.40 at ¥118.4/$1) bid which values Nikko at $10.8 billion. Last week, Harris Associates (7.2% stake) and Southeastern Asset Management (6.6%), both said Nikko is worth more than ¥2,000 ($16.89) per share. Orbis also says Nikko is worth more than ¥2,000/share, while Mackenzie reportedly values it at ¥1,700 - ¥1,800/share. Nikko's four largest shareholders own a combined 26+ percent. Citi owns a 4.9% stake and Mizuho Financial Group, which has voiced an interest in a tie-up with Citi, owns a 4.8% stake. Nikko traded further above Citi's bid to ¥1,424 ($12.03) at the end of the morning session in Tokyo, but finished the day down 0.43% to ¥1,404 ($11.86) -- 4% higher than Citi's bid. Nikko faces a possible delisting from the Tokyo Stock Exchange stemming from an accounting scandal, with a decision expected by the TSE sometime this week.
Sources: Bloomberg, Forbes-XFN Newswire, Reuters
Commentary: Second Nikko Shareholder Says Citi's Bid Too Low, Shares Trade Higher • Mizuho's Role In Citi's Bid for Nikko • Citigroup: Japan Expansion and M&A Could Bring Tokyo Exchange Listing
Stocks/ETFs to watch: Citigroup (NYSE:C), Nikko Cordial (OTC:NIKOY), Mizuho Financial Group (NYSE:MFG). Competitors: Mitsubishi UFJ Financial Group (NYSE:MTU), ABN Amro Holding N.V. (ABN), Nomura Holdings (NYSE:NMR). ETFs: iShares S&P Global Financial Index Fund (NYSEARCA:IXG), iShares Dow Jones US Financial Services (NYSEARCA:IYG), Financial Select Sector SPDR (NYSEARCA:XLF)
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