AOKI Won't Pursue Takeover of Futata If Denied
President Aoki of AOKI Holdings has told reporters that, if men's clothing retailer Futata doesn't approve AOKI's plan for buying the company, it would not pursue a takeover bid. AOKI is Japan's second-largest men's store chain, but lacks a presence in Kyushu, where Futata is based. Besides AOKI, Futata has received an offer from Konaka, Japan's fourth-largest men's store chain, which already has a 20% stake in the company and is proposing a strengthened tie-up.

Futata is being advised by Mitsui-Sumitomo Bank and plans to respond to both offers by August 18. Mr. Aoki said that he believes AOKI has made the best offer; but if Futata says no, he would only tell to do their best. Market participants are questioning whether both offers are too high, since shares of both AOKI and Konaka have recently declined.