Nikko Cordial: Southeastern Asset Management Won't Sell at 1700 Yen

Reuters reports that Mason Hawkins and company will not be selling their Nikko Cordial (NIKOY.PK) stake to Citigroup (C):

A spokesman for Southeastern Asset Management, Inc. said in a statement the firm "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."

This follows the statement issued by Orbis Investment Management in the last day saying it will not tender its Nikko shares at 1700 yen. Orbis further stated it is maintaining a sell order for its Nikko stake -- approximately 5.8% -- for 1900 yen per share.

According to Orbis, 29% of Nikko shares are now being offered for 1900 yen per share. Will this pressure Citi to raise its offer? Citi hasn't comment so far. Tender offer closes April 26.

The clock is ticking.

Comments

[Lance:]

What clock would that be? The hedge-fund manager performance-bonus clock? Twenty-nine percent is a far cry from 50 percent.

And they probably won't tender, either, but this is just a noise-making repetition of what they have already said.

Some wag once said that you should never confuse a bull market with brains.

Again, if I was Citi I'd pay the 5 yen per share and walk, and let these fools explain to "their clients" how they fumbled a touchdown on the one-yard-line and then kicked it through the back of the end zone.

Of course Mr. Prince could rescue them, but he also could play it smart and pick up a ton of shares below 1700 simply by pulling the rug out from under these guys who are really overplaying their hands.

2007 Apr 22 04:28 AM