Bain Capital May Withdraw Fuji Soft Bid as KKR Ups Offer

Bain Capital is considering withdrawing its tender offer for Japanese IT firm Fuji Soft after rival U.S. private equity giant KKR raised its bid. Bain stated on Monday that it is "carefully considering its future policy, including the option of withdrawing."

The move would mark the end of an intense bidding war between Bain and KKR, as both firms vied for control of Fuji Soft. Despite rejection from Fuji Soft’s board, Bain had persisted, citing concerns about the board’s stance and its potential harm to minority shareholders.

Last week, KKR raised its offer to 9,850 yen ($64.88) per share, surpassing Bain’s last bid of 9,600 yen per share from December. Bain had planned to launch its tender offer in early February but now faces a tough decision.

KKR currently holds a 33.97% stake in Fuji Soft after acquiring shares from activist investors 3D Investment Partners and Farallon Capital. Fuji Soft shares closed at 9,960 yen on Monday, reflecting the heated takeover battle. The Tokyo stock market remains closed Tuesday due to a public holiday.

This bidding war highlights Japan’s increasingly competitive M&A landscape, with global investment firms targeting companies with underutilized assets and corporate governance inefficiencies. Bain, backed by Fuji Soft’s founding family, has yet to finalize its course of action.

With KKR gaining a strategic advantage, Bain’s potential exit could cement KKR’s control over Fuji Soft, signaling a shift in Japan’s private equity dynamics.