Mackenzie Financial and Orbis Investment Management have voiced objection to Citigroup's bid for Nikko Cordial (OTC:NIKOY). Along with Harris Associates and Southeastern Asset Management, that makes four major Nikko shareholders rejecting the proposed deal.
Bloomberg reports that those four together own 26% of Nikko Cordial, and other reports have foreign (non-Japanese) investors owning 60% of the outstanding shares.
Many observers believe that Japanese fund managers holding shares will almost certainly go for the deal. Because Japanese regulations forbid funds owning stocks in unlisted companies. As we know, Nikko faces being delisted from the Tokyo Stock Exchange.
I said the other day the situation feels like it's becoming more fluid. Right now it seems as though momentum is building among foreign shareholders in demanding a better deal.
Will it happen? It depends on whether investors holding that 60% of Nikko stock stick together.
NIKOY 1-yr chart: