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Murakami Fund Threatens to Sue Seibu Group Over New Capital Plan

Posted on: Thursday, 6 October 2005, 12:00 CDT

By Kyodo News International, Tokyo

Oct. 6--TOKYO -- An investment fund led by bureaucrat-turned-financier Yoshiaki Murakami warned late Wednesday it will file a damages suit against the Seibu Railway Co. group if the group proceeds to raise new capital of up to 160 billion yen.

The fund said it will file the suit as a shareholder. It has a stake of about several percent in the railway company.

It posted the warning on its website. The statement came as the fund is separately trying to acquire a majority stake in Hanshin Electric Railway Co.

The fund said it has proposed acquiring Seibu Railway shares for 1,000 yen per share, compared with 600 yen per share under the railway group's capital increase plan.

The Seibu group's plan will cause damage to the group, the fund said, adding it will ask a court to issue an injunction against the new capital plan and file a damages suit if necessary.

In August, the Seibu group, including hotel and resort facility operators, said it had chosen to reconstruct itself under a holding company.

The group plans to set up the holding company by next March after winning approval at a shareholders meeting this year.

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Copyright (c) 2005, Kyodo News International, Tokyo

Distributed by Knight Ridder/Tribune Business News.

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Source: Kyodo News International, Tokyo

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