TOKYO -- U.S. private-equity firm Bain Capital's takeover bid for Japanese advertising agency Asatsu-DK is facing opposition from its two biggest shareholders.
U.K. asset management company Silchester International Investors, the second largest shareholder of ADK, announced on Wednesday that it would oppose the proposed acquisition on the grounds that the current offer price is too low.
British media group WPP, the largest shareholder, is also against the takeover bid.
Bain had announced it would buy ADK shares for 3,660 yen ($32.46) per share, but Silchester has refused to accept, saying: "The current offer price substantially undervalues ADK, its assets, franchise and future opportunities."
Activist fund Silchester owns about 17% of ADK's outstanding shares while WPP owns a 25% stake.
The holders of more than 50.1% of the shares have to accept the offer to make the takeover bid work.
As of Tuesday, when it was reported that WPP would not accept, shareholders with a 42% stake were against the bid.