Orbis Investment Management has publicly slammed Citigroup's bid for Nikko Cordial (NIKOY/OTC) as too low and said it's seeking a higher price for its 56.5 million shares of the Japanese broker:
Citigroup's offer of 1,700 yen for the Nikko shares it doesn't already own "continues to materially undervalue the company,'' Bermuda-based Orbis said in a statement. Orbis wants to be bought out at 1,900 yen, or 12 percent more, and "will immediately place a firm selling order on the Tokyo Stock Exchange,'' the money manager said.
This bit ends the report:
In addition to Orbis, Harris Associates LP of Chicago, Southeastern Asset Management Inc of Memphis, Tennessee, and Mackenzie Financial Corp. of Toronto have said Citigroup's latest bid is too low.
You might have seen another report last week stating that Harris has reduced its Nikko stake by 1% or so. Which by itself doesn't mean a whole lot one way or the other.
With Nikko not being delisted, shareholders aren't facing nearly as much pressure to accept Citi's offer. They -- we -- could contentedly hold Nikko shares with the conviction that the market would ultimately realize the company's true value. Even if Citi doesn't. Or won't.
Comments