April 11, 2007 – Though Pentax yesterday rejected a share-swap merger with semiconductor parts maker Hoya Corp. over what shareholders felt was an undervalued offer, the camera maker left the door open for a possible renegotiation. Hoya today announced it will decide if it will make a tender bid for Pentax at an April 23 board meeting, according to a Reuters report.
The news of Hoya’s anticipated tender bid proposal comes after ongoing talks of a Pentax-Hoya merger, a deal which was estimated to be worth $700 million when it was originally announced in December 2006. Yesterday, hesitant Pentax shareholders decided to call off the share-swap plan at what Pentax called an “extra-ordinary meeting of its Board of Directors.”
“It has been resolved that the merger shall be abandoned at this point in time due to conditions within the company as well as conditions outside the company including shareholders,” stated a Pentax press release yesterday. “However, it has been resolved to continue discussions on management integration in a broader sense with Hoya Corp.”
Pentax president Fumio Urano resigned and new president Takashi Watanuki was ushered in. Watanuki is a former board member who vetoed the Pentax-Hoya deal.
On April 23, Hoya will reportedly offer 770 yen (equivalent to $6.45 USD) for a Pentax share in the tender bid, one-fifth more than previously offered. Hoya will also announce their earning reports for the year at the meeting.
