Printing Groups Merger Hit With More Trouble In The Ink Cartridge World
The planned merger between Japanese printer Canon and ink cartridge manufacturer Oce has hit more problems after a major investor in the firm voiced their opposition.
Hermes Focus Funds, which has a stake in the Dutch company, has voiced its resistance to the bid on the grounds that it is too "meagre".
In an open letter to both the Oce and Canon boards, the fund said that it would not sell its share of the Dutch firm, 3.3 per cent, on the grounds that the Japanese printer manufacturer's bid of €8.60 per share was too low.
This comes after Oce posted losses of €23 million for the fourth quarter of 2009.
Rokus van Iperen, chairman of the company, said: "Our revenues continued to decline in the fourth quarter as customers remained uncertain about the economic situation and sustained their efforts to reduce costs.
"In 2010, we anticipate that the markets will remain challenging. In order to further strengthen our competitive position and drive sales under difficult market conditions, we will continue to introduce innovative products."
Last year, when Canon announced the merger with Oce, it said that it hoped the move would strengthen its global standing, allowing it to compete with larger printer manufacturers such as HP.
By Angelina Jolessi