U.S. private equity firm Bain Capital is considering withdrawing its tender offer for Japanese IT company Fuji Soft after rival KKR & Co ( KKR ) raised its bid in an extended bidding war.

Bain stated that it is carefully evaluating its next steps, including the possibility of pulling out. If Bain concedes, it would mark the end of months of intense competition with KKR for control of Fuji Soft, Nikkei Asia reported.

Bain's potential withdrawal follows persistent efforts despite Fuji Soft's board rejecting its bid—a rare occurrence in Japan. Bain continued pushing forward, citing concerns over Fuji Soft's response and its potential impact on minority shareholders. However, KKR recently increased its offer to 9,850 yen per share, surpassing Bain's latest bid of 9,600 yen from December.

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Initially, Bain had planned to launch its tender offer in early February, but KKR's higher bid has altered the dynamics of the competition. This battle underscores the increasingly competitive landscape for dealmaking in Japan, where global investors are targeting firms perceived to have underutilized assets or ineffective corporate governance.

KKR currently holds a 33.97% stake in Fuji Soft after acquiring shares from activist investors 3D Investment Partners and Farallon Capital in the first phase of its two-part bid.

Recently, KKR extended its tender offer deadline for Fuji Soft to Feb. 7, giving shareholders more time to evaluate Bain Capital's competing hostile takeover bid.

Price Action: KKR shares are trading lower by 0.38% at $147.37 premarket at the last check Tuesday.

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