Canon still short of target in Oce bid

TOKYO, JAPAN: Japan's Canon said it had acquired or been tendered more than 71 per cent of shares in Oce in a takeover bid of the Dutch printer maker that closed Monday, short of its target of at least 85 per cent.

Canon, which offered to buy Oce in November at a price that valued the company at 730 million euros, said it would decide by Thursday whether it would be satisfied with taking a 71 per cent stake, extend the tender offer, or walk away from the deal.

Some Oce shareholders have come out against Canon's 8.6 euro per share offer as too low. Hermes Asset Management and Universities Superannuation Scheme have asked a Dutch court to look into the negotiations between Canon and Oce.

Canon's takeover attempt comes amid a flurry of acquisitions in the office equipment industry, including Ricoh Co's takeover of U.S. distributor Ikon Office Solutions and Xerox Corp's purchase of Global Imaging.

Shares in Canon closed up 0.8 per cent at 3,770 yen following the announcement, outperforming the Nikkei average .N225, which gained 0.5 per cent.

Canon, the world's largest digital camera maker and a major producer of copiers and printers, has looked to the Oce deal as a way to generate earnings growth.

Canon's net profit plunged by more than half in 2009 amid a slide in sales due to sluggish demand for office equipment, as corporate clients reined in spending amid the economic slump.

Canon and Oce products have little overlap, with the Japanese company strong in regular office machines and mid- to lower-end production printers while Oce excels in high-end and advertisement-use large-sized printers, Canon has said.