Monday, 24 October 2016
Last updated 2 days ago
Jul 11 2008 | 11:01am ET
Still smarting over its defeat at the hands of New York hedge fund Steel Partners, Japanese wigmaker Aderans Holdings is seeking to exact a measure of revenge.
The company, which last month saw its president and most of its board ousted as the result of a campaign led by Steel, said it may invoke a Japanese law that could require the hedge fund to refund some ¥59 million (US$551,000) it made trading the company’s stock.
Steel, which was rewarded for its success with the appointment of one of its managing partners to Aderans’ board, seems indifferent to the possible demand. The firm said it is preparing to pay the company, though it claims the trades were made to adjust its Aderans holding and not to turn a profit.
Under Japanese law, a company can ask investors with a stake of more than 10% to return profits made by selling and buying its shares within a six-month period. Steel is Aderans’ largest shareholder with a 26.7% stake.