Private equity and investment company KKR (KKR) has beat rival Bain Capital in the bidding war to acquire Japanese IT company Fuji Soft (JP:9749). Bain Capital bowed out of the battle after KKR increased its offering for Fuji Soft to 9,850 yen, or $65 per share, earlier this month. That surpassed Bain Capital’s offer of 9,600 yen made in December.
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KKR’s victory over Bain Capital in the bidding war for Fuji Soft is a major win for the company as support was split. While the Fuji Soft Board of Directors and a special committee favored KKR in the bidding war, founder Hiroshi Nozawa backed Bain Capital with his family’s 18.6% stake in the company.
With this bidding war over, KKR can proceed with its acquisition plans for Fuji Soft. This marks the end of a months-long battle with Bain Capital and will allow the private equity and investment firm to focus on bringing Fuji Soft into its fold.
What This Means for KKR Stock
KKR stock started to rise late last week after Bain Capital said it might back out of the bidding war for Fuji Soft, sending shares up 1.03% on Friday. With that victory secured, KKR stock will likely see additional gains. However, investors will have the wait to see the effects of Bain Capital admitting defeat as U.S. stock markets are closed for Presidents Day. Depending on investor reactions, this could help reverse KKR stock’s 4.85% drop year-to-date.
Is KKR Stock a Buy, Sell, or Hold?
Turning to Wall Street, the analysts’ consensus rating for KKR is Strong Buy based on 12 Buy and three Hold ratings over the last three months. With that comes an average price target of $174.43, a high of $214, and a low of $150. This represents a potential 24.1% upside for KKR stock.
