Bain Capital has proposed a ¥600 billion (US$4.1 billion or RM17.9 billion) takeover of Fuji Soft Inc, the Nikkei reported, a surprise offer that threatens to derail an agreed-upon acquisition by KKR & Co.

A KKR entity last month agreed to acquire and take the software developer private at about ¥8,800 a share. Bain Capital is now proposing to buy out the Japanese firm at ¥9,200 to ¥9,300 per share, or about 5% above KKR’s bid, the Nikkei said, without citing its sources.

Bain’s counteroffer sets the stage for a rare public takeover battle in Japan, where corporate acquisitions are traditionally negotiated and sealed behind closed doors. But a weaker yen and regulators’ emphasis on shareholder value are now ramping up M&A activity, most recently with Alimentation Couche-Tard Inc’s proposed buyout of Seven & i Holdings Co.

In the case of Fuji Soft, activist investors have pushed for some time for the software firm to unlock value through spinoffs or deals.

Fuji Soft is a contract software developer for Fujitsu Ltd, which supplies clearance and network systems for some of Japan’s biggest banks such as Mizuho Financial Group, as well as government agencies.

  - Bloomberg