Myojo Foods Opposes U.S. Takeover Bid

TOKYO (AP) - Japanese instant noodle maker Myojo Foods Co. said Tuesday it is opposed to a takeover bid launched by Steel Partners Japan, saying it would rather implement its own business plans.

Steel Partners launched a 29.82 billion yen (US$253.96 million; euro199.7 million) takeover bid for Myojo Foods on Friday, still a rare move in a country where consensus and negotiation, not direct appeals to shareholders, typically drive business deals.

Myojo said in a press release it could improve its earnings and raise shareholders' value through its own plans, which include building a 4.1 billion yen (US$34.9 million; euro27.44 million) plant in Japan next year to increase annual capacity by 25 percent.

The Tokyo-based company also said it would renew production facilities at its subsidiary in Singapore, its core group firm for Southeast Asia.

U.S.-based Steel Partners aims to boost its stake in Myojo to 100 percent from the 23.1 percent its group holds through a tender offer that runs through Nov. 27.

Myojo's share price has jumped 23 percent since Steel Partners' bid on Friday. Late afternoon Tuesday, shares were trading at 750 yen (US$6.39;euro5.02), up 1.5 percent from the previous day and above the 700 yen (US$5.96; euro4.69) Steel Partners is offering per Myojo share.

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