JUNE 2008 W4 ALERT
ALERT Caught in “Clarifying” Crossfire…Kenwood Keeps Clarifying – Bain Capital Clarifies Too
<June 25, 2008>Representatives for Kenwood Corp., Bain Capital Partners LLC, and D&M Holdings Inc. are going to great lengths to get the word out that Kenwood is NOT involved in Bain’s acquisition of D&M Holdings. Several news outlets, including the ALERT, have reported the tender offer by Bain for 100% of all shares of D&M Holdings….starting with an agreement to purchase the 49% held by RHJ International SA.
In the wake of the official announcement of the tender offer by Bain, the companies have sought to counter reports in the press of a Kenwood involvement in
the transaction. Kenwood’s interest in some form of partnership with D&M has been reported for several weeks now. However, now that the tender is about to be officially launched, the parties feel the need to make clear that Kenwood is not a part of this transaction.
Today, the ALERT received this statement from Kenwood’s Public & Investor Relations Office:
“Notice regarding the news reports on June 21st and June 23rd It has been reported in the media on June 21st and June 23rd in japan [sic] that Kenwood Corporation has decided to seek a business and capital alliance with D&M Holdings Inc. (of at most one billion yen), however, as stated in the June 21st press release, nothing has been decided at present.
There is no fact that Kenwood has decided its plan to formulate a business and capital alliance as described in certain news reports.”
This communication from Kenwood was followed shortly thereafter by a statement from Bain Capital:
Bain Capital Statement Regarding Exclusive Offer for D&M Holdings
TOKYO, Japan – June 24, 2008 – In response to speculation regarding the anticipated tender offer for D&M Holdings, Bain Capital would like to clarify that Kenwood is not an investor in the proposed transaction, and there are no discussions or plans regarding a future alliance with D&M at this time.
It is interesting to note that the ALERT was unable to obtain this statement from Bain…in fact a Bain spokesperson denied the existence of a formal statement. Fortunately, the ALERT was able to obtain the statement from a helpful reporter at another news outlet.
What the Bain spokesperson did provide the ALERT with, however, was a clear statement that Bain can “categorically state that there is no ongoing discussion with Kenwood at this time.”