The Wall Street Journal-20080205-Sapporo Holdings Ltd-- Panel Says Takeover Would Damage Value

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Sapporo Holdings Ltd.: Panel Says Takeover Would Damage Value

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Sapporo Holdings Ltd. said it has been told by a special committee that a takeover proposal by New York-based Steel Partners Japan Strategic Fund would damage its corporate value. Sapporo, Japan's third-biggest beer brewer, said it consulted outside experts on how to deal with Steel Partners, which plans to boost its stake in the beer maker to 66.6% from the 17.52% stake it held as of January last year. "The possibility is high that [Steel Partners' takeover] would damage Sapporo's corporate value and would considerably harm the common interest of its shareholders," the committee said in a statement. The move is the latest in a tug-of-war between Sapporo and Steel Partners. Sapporo will decide by early March whether to agree to the takeover proposal or take defensive steps.