• The bid has sparked a rare showdown between the two private equity firms, both vying for control over Fuji Soft.
• Historical instances of such showdowns include the battle between KKR and TPG Capital over TXU Corp., and KKR's contest with a management group for RJR Nabisco.
• The outcome of this contest, dependent on Bain securing the backing of Fuji Soft, will set a precedent for future showdowns in the industry.

In a recent turn of events, U.S. buyout fund Bain Capital has made a binding offer to acquire Fuji Soft, a Japanese software developer. The offer, valued at 9,450 yen per share, places the overall valuation of Fuji Soft at a staggering $4 billion.

This move by Bain Capital has outbid its rival, KKR, by approximately 7%. Bain Capital, in a statement released on Friday, expressed its intention to launch the offer towards the end of October. However, this is contingent on securing the backing of Fuji Soft.

This development has sparked a rare showdown between Bain and KKR, both vying for control over Fuji Soft, a company that has been in conflict with some of its major shareholders. KKR, not to be outdone, had last month advanced the commencement of its tender offer by about a week. The offer, however, remained unchanged at 8,800 yen. KKR also announced its plan to conduct the tender offer in two stages.

In response, Fuji Soft's board decided to recommend its shareholders to tender their shares to KKR's first tender offer. The shares of Fuji Soft closed at 9,000 yen on Friday, reflecting the intense competition and interest in the company.

A Rare Showdown in Private Equity

This high-stakes bidding war between Bain and KKR is a rare occurrence in the world of private equity. It is not often that two major private equity firms engage in such a public contest for control over a company. This event has drawn significant attention from industry observers and stakeholders alike.

Historically, such showdowns have been few and far between. One notable instance was the battle between KKR and TPG Capital over the acquisition of TXU Corp., a Texas-based energy company, in 2007. The deal, valued at $45 billion, was the largest leveraged buyout in history. The competition between KKR and TPG Capital was fierce and public, much like the current situation between Bain and KKR.

The current situation also brings to mind the 1988 battle for RJR Nabisco, a food and tobacco conglomerate. The contest, between KKR and a management group led by RJR Nabisco's CEO, was one of the most dramatic in history. KKR eventually won the bid, paying $25 billion for the company in what was then the largest corporate buyout in history.

The Future of Fuji Soft

The Bain-KKR showdown over Fuji Soft is a testament to the company's value and potential. With a valuation of $4 billion, Fuji Soft is a significant player in the software development industry. The company's performance and growth prospects have evidently attracted the attention of these major private equity firms.

Bain Capital's offer, 7% higher than KKR's, is a clear indication of the value it sees in Fuji Soft. The firm's willingness to pay a premium for the company underscores its belief in Fuji Soft's potential for growth and profitability.

However, the outcome of this contest is far from certain. With KKR's tender offer already recommended by Fuji Soft's board, Bain Capital will need to secure the backing of Fuji Soft to proceed with its offer. The coming weeks will undoubtedly be crucial in determining the future of Fuji Soft.