US hedge fund eyes Japan brewer

Sapporo is Japan's third biggest beer maker behind Kirin and Asahi

A US hedge fund has submitted proposals to take a majority stake in Sapporo, Japan's number three brewer.

Steel Partners, which already owns 17.52% of the beer maker, wants to up its holding to 66.6%.

It said the move would reflect its confidence in the brewer, whose brands include Namashibori and Shizuku as well as the Sapporo label.

Last year, Steel failed in a bid to swallow up Japanese food firm Myojo in a hostile takeover.

Myojo was sold, but stayed in Japanese hands, thanks to a "white knight" approach by food giant Nissin, maker of Cup Noodle.

Considerations

"Steel Partners has high regard for the management and employees of the company and wishes to increase its stake to reflect its continued confidence in the prospects of the company," Steel said in a statement.

"We are not considering changing the business and human resources of the company, including its board members."

Sapporo, whose bigger Japanese rivals are Kirin and Asahi, said it would "respond after examining the content of their proposal".