Shares of Kakaku.com (TYO:2371), operator of Japan's price-comparison services and the restaurant review platform Tabelog, rose on Monday after reports indicated Bain Capital and LY Corp (TYO:4689) are preparing a binding offer that would surpass EQT's ongoing takeover bid.
By 03:38 GMT, Kakaku stock was up 2% at 3,370.0 yen.
According to the report, Bain and LY - the latter an affiliate of SoftBank Corp (TYO:9984) that runs Yahoo Japan - have completed due diligence on the Tokyo-based company and are likely to submit a formal bid next week. The consortium's expected proposal is said to be higher than EQT's current tender offer of 3,000 yen per share, a valuation that equates to roughly 595 billion yen, or about $3.7 billion.
In May, the same group had previously put forward an offer of 3,232 yen per share. The new reported move would intensify competition for control of Kakaku and could alter the contest between bidders.
The Bloomberg report noted that LY is looking for synergies between its existing online businesses and Kakaku's digital platforms. That strategic rationale aligns with LY's role as a SoftBank Corp affiliate operating Yahoo Japan, suggesting an intent to integrate Kakaku's services with LY's broader web assets.
Last month, Kakaku's board publicly endorsed EQT's proposal and urged shareholders to tender their shares under EQT's offer. However, the possibility of a superior bid from Bain and LY introduces an option that could compel the company and its board to revisit their recommendation.
Market participants will watch whether the consortium follows through with a formal, binding offer and how Kakaku's shareholders and board respond if the reported higher bid materializes. The contest underscores competitive interest in digital consumer platforms and the value buyers place on potential cross-business synergies.