September 11, 2017 / 5:15 AM / a year ago

Elliott discloses 5 pct stake in Japan's Hitachi Kokusai Electric

HONG KONG, Sept 11 (Reuters) - U.S. hedge fund Elliott Management Corp said on Monday it has a stake of just over 5 percent in Hitachi Kokusai Electric, a chip making equipment and video solution business.

U.S. buyout firm KKR & Co LP had agreed in April to buy Hitachi Kokusai from Hitachi Ltd in a deal valuing the unit at about $2.3 billion, but put the deal on hold after a third-party committee reporting to Hitachi Kokusai’s board said it no longer supported the transaction.

“We are encouraged by the company’s recent business success and the board’s efforts to safeguard shareholders’ interests through the establishment of the third-party committee,” Elliott said in a statement.

Hitachi Kokusai shares were up 3.6 percent in afternoon trade, while Hitachi shares gained 1.4 percent, compared with a 1.4 percent rise in the benchmark Nikkei share average. (Reporting by Elzio Barreto; Editing by Edwina Gibbs)

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