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Hitachi Kokusai deal is a victory for the hedge fund manager that lost

Elliott Management rids itself of two thorny issues by letting KKR win

Elliott proposed a deal to Hitachi Kokusai parent Hitachi over Italian company, Ansaldo.   © Reuters

TOKYO Kohlberg Kravis Roberts has finally succeeded in buying a substantial stake in Hitachi Kokusai Electric, ending a monthslong takeover tussle with Elliott Management. But it may be Elliott that emerges as the ultimate winner, having effectively killed two birds with one stone.

Elliott, which operates on a strategy of buying into companies in the process of mergers and acquisitions, built a stake over the past few months in Hitachi Kokusai, a maker of semiconductor manufacturing equipment, to just under 8.59%. With that stake, it was able to pressure U.S. investment fund KKR into increasing its offer price, twice.

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