Tokyo, Feb 17 - Steel Partners said it has withdrawn its offer to raise its stake in Japanese beer maker Sapporo Holdings to one-third, the latest sign the U.S. activist fund is scaling back in Japan.
Steel Partners, which has an 18.6 percent stake in Sapporo and sizable stakes in at least two dozen other Japanese companies, had offered last year to lift its holding in the brewer to 33.3 percent at a per share price of 875 yen.
The market had seen little chance of that bid materialising. Prior to the announcement, Sapporo's shares closed down 9.7 percent at 381 yen, less than half Steel Partners' offer price.
Steel Partners said in a statement it was withdrawing its offer due to Sapporo's "ever-worsening financial and operational performance and continued refusal to negotiate the terms of an acceptable offer to shareholders".
According to a recent survey of public filings by Reuters, Steel Partners sold about 150 billion yen worth of Japanese shares over the past year, cutting its holding to about 240 billion yen worth as of last month.
Through a press agency, Steel Partners has refused to comment on its individual trades.
Analysts said the fund is likely selling to return money to clients hurting from the financial crisis.